sebi:WTM/SR/SEBI/IMD/56/11/2016
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Ad-interim ex-parte order directing cease and desist, no diversion of funds, and withdrawal of all advertisements/websites; treated as show cause notice to the noticees
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
Regulations
- Reg. 3(1)
- Reg. 2(m)
- Reg. 2(u)
Parties
- Motivate Financial Services Private Limited
- Mr. Nitin Hirji Babaria
- Ms. Komal Rajendraprasad Jaiswal
- Ms. Devuben Hirji Babaria
Holding
MFS and its directors, not registered with SEBI, were prima facie found to have violated Section 12(1) of the SEBI Act read with Regulation 3(1) of the SEBI Investment Advisers Regulations and Regulation 3(1) of the SEBI Research Analysts Regulations by providing investment advisory and research analyst services without registration. An ad-interim ex-parte order was issued directing them to cease such activities, not divert funds, and withdraw all related advertisements and websites.
Full text
Page 2 of 9 ii. Number of clients to whom they have provided the package/service; iii. Total amount of money collected from the aforesaid clients as fees during the year. f. List of clients and fee charged for various products/services offered by MFS; g. Details of the SEBI registration, if any obtained by MFS; h. A copy of the audited annual accounts for previous three financial years; i. A copy of account statements of all its bank accounts for the last three financial years; j. Details of the website, person responsible for hosting and maintaining such website.” The letters sent to MFS were returned undelivered with the remarks “no such person”.
Page 3 of 9 2.5 Since the information furnished by Nitin Babaria was found to be incomplete, SEBI vide email dated March 14, 2016 advised MFS to submit the remaining information sought vide letter dated February 26, 2016.
Page 4 of 9 2.10 SEBI vide email dated June 15, 2016 and a reminder dated June 21, 2016 advised MFS to submit the MoU entered between Nitin Babaria and Mr. Sandip Sitani. Nitin Babaria vide email dated June 21, 2016 forwarded the MoA and Certificate of Incorporation of MFS which was submitted earlier vide email dated March 22, 2016. However, the information regarding the purchase of the company has not been submitted by Nitin Babaria till date.
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Source: SecMarx — sebi:WTM/SR/SEBI/IMD/56/11/2016. 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.