sebi:WTM/SR/SEBI/IMD/19/03/2016
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Facts / Headnote
Restrained Amit Ahire (Prop. OSAR Capital) from providing investment advisory services, directly or indirectly, till further directions; directed withdrawal of all advertisements and representations relating to investment advisory activities; order treated as show cause notice; enquiry proceedings initiated for violation of Regulation 13(a) and (b) and Clauses 1 and 2 of the Code of Conduct under the Third Schedule of the Investment Advisers Regulations.
Provisions invoked
- s. 11
- s. 19
Regulations
- Reg. 13
- Reg. 9
- Reg. 13(a)
Parties
- Mr. Amit Baburao Ahire (Prop. - OSAR Capital)
Holding
SEBI prima facie held that Amit Ahire, a SEBI registered investment adviser, violated Regulation 13(a) and 13(b) of the Investment Advisers Regulations, 2013 and Clauses 1 and 2 of the Code of Conduct under the Third Schedule by knowingly allowing a debarred entity (HBJ Capital) to use his SEBI registration to provide investment advisory services through his proprietary concern OSAR Capital, and by failing to inform SEBI of the formation of OSAR Capital. SEBI restrained Ahire from providing investment advisory services, directly or indirectly, pending enquiry.
Full text
Page 2 of 16 HBJ Capital recruited an independent financial advisor, viz. Mr. Amit BaburaoAhire and is using his SEBI registration number atOSAR Capital. I called their office end of August 2015 and they told me that HBJ is now OSAR Capital. I made some enquiries and was told that the entire team running HBJ is now behind OSAR Capital. -office address/location is the same, -phone numbers are the same, their investor services are the same”
Page 3 of 16 The advice is sent to the clients as per the package they have chosen through a mail with research reports and a SMS.”
Page 4 of 16 capital. Further, he submitted that all the activities of OSAR Capital including marketing, sales, research, and client advisory services are being provided by HBJ Capital and he is not involved in the entire process. The statements made by Amit Ahire, vide the said email dated October 27, 2015 were as under:
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Source: SecMarx — sebi:WTM/SR/SEBI/IMD/19/03/2016. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.