sebi:WTM/SR/SRO-BLO/115/06/2015
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Facts / Headnote
Ad-interim ex-parte directions issued; order treated as show cause notice
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
- s. 12
Regulations
- Reg. 3
- Reg. 3(1)
- Reg. 2(m)
- Reg. 2(1)(b)
- Reg. 2(1)
- Reg. 3(4)
Parties
- M/s. HBJ Capital Services Pvt. Ltd.
- Mr. Kumar Harendra
- Ms. Amrita Singh
- Mr. Abhishek Kumar Singh
- Mr. Jitendra Kumar
- Ms. Arunmozhi Gopalan
- Mr. Ponnuraj Gokulraj
- HBJ Capital Ventures LLP
Holding
SEBI prima facie found that HBJ Capital Services Pvt. Ltd. and its directors, and HBJ Capital Ventures LLP and its designated partners, were acting as an Investment Adviser and an Alternative Investment Fund respectively without obtaining registration, in violation of Section 12(1) of the SEBI Act read with the relevant Regulations, and directed them to cease such activities pending further proceedings.
Full text
Page 2 of 18 4. HBJ Capital in its reply vide letter dated January 07, 2014 inter alia submitted as under: a. "We are mainly into the business of research and consulting in the field of equity and capital market, b. The aforesaid consultancy services are provided to those who have subscribed to the services of the company, c. We are engaged in the business of providing investment advices to the subscribed clients and is an ‘Investment Adviser’ within the meaning of SEBI (Investment Advisers) Regulations, 2013, d. The registration under SEBI (Investment Advisers) Regulations, 2013 was not opted by them merely due to oversight and that they will, without further delay, take necessary actions and steps to get it registered with the said regulation as an investment adviser."
Page 3 of 18 c. Break up of AUM under various asset classes, d. Details of clients availing various schemes offered by them, such as names, joining date, name of scheme, end date, KYC particulars etc., e. Client-wise details of fund mobilized, f. Demat and bank accounts statements, g. Details of buying and selling securities.
Page 4 of 18 e. "Statement of Transaction cum Holding" for the period July 1, 2014 to July 31, 2014 of the demat account held by HBJ Capital LLP with India Infoline Ltd., f. "Statement of Accounts" for the period April 1, 2014 to April 30, 2014 of the demat account held by HBJ Capital LLP with Edelweisss Broking Ltd., g. "Statement of Accounts" as on June 30, 2014 of the demat account held by HBJ Capital LLP with Angel Broking, h. Details of 4 brokers with whom buy and sell order were placed by HBJ Capital and HBJ Capital LLP, i. PAN Card copies of HBJ Capital and HBJ Capital LLP.
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Source: SecMarx — sebi:WTM/SR/SRO-BLO/115/06/2015. 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.