{"id":253274,"date":"2021-08-26T17:00:49","date_gmt":"2021-08-26T11:30:49","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=253274"},"modified":"2021-08-26T15:37:30","modified_gmt":"2021-08-26T10:07:30","slug":"investors","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/26\/investors\/","title":{"rendered":"SEBI | On not finding any justifiable reason to revoke interim ex-parte order, continues to stand&#8211;Protects the interests of investors"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities and Exchange Board of India (Sebi):<\/strong> Madhabi Puri Bach, Whole Time Member, on not finding any justifiable reason to revoke or modify the directions issued against the Noticee concluded that the findings in the interim order continue to stand at <em>prima facie <\/em>level, was of the opinion that the Noticee was <em>prima facie<\/em>, in contravention of various provisions of the IA Regulations and the PFUTP Regulations, as outlined in the Interim Order.<\/p>\n<p style=\"text-align: justify;\">In the pertinent matter, the Noticee had challenged the impugned interim-ex parte order of SEBI. The interim ex-parte Order of SEBI stated that the Noticee:<\/p>\n<p style=\"text-align: justify;\">-did not carry out risk profiling and suitability assessment of clients as per the provision of SEBI (Investment Advisers) Regulations, 2013 (hereinafter referred to as \u201cIA Regulations\u201d);<\/p>\n<p style=\"text-align: justify;\">-did not charge fair and reasonable fee from clients as per the provision of IA Regulation;<\/p>\n<p style=\"text-align: justify;\">-did also trigger the Code of Conduct for Investment Advisers by virtue of the above activities.<\/p>\n<p style=\"text-align: justify;\">Therefore SEBI was of the view that the Noticee had violated SEBI (Investment Advisers) Regulations, 2013 (hereinafter referred to as \u201cIA Regulations\u201d) and\u00a0 SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as \u201cPFUTP Regulations\u201d)<\/p>\n<p style=\"text-align: justify;\">The Tribunal considered various factors and the ex-parte order and the basis on which the Order was passed. It therefore, concluded that<\/p>\n<p style=\"text-align: justify;\"><em>\u201callowing the Noticee to continue providing its services to its clients, regardless of whether they have complained against the Noticee or not, would be tantamount to allowing the fraudulent investment advisory activity to continue, which will be inimical to the interests of clients and will also be in contravention of what has been envisaged under the IA Regulations. Hence, the interim order was passed in order to protect the interests of existing as well as prospective clients of the Noticee\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">It was further of the opinion that,<\/p>\n<p style=\"text-align: justify;\"><em>\u201cAs already mentioned in the interim order, existing clients of the Noticee have been sold services without any consideration of their financial situation, investment objective and risk profiling. The selling of such plans goes against the concept of customized advice which would be required to be provided based on the investors\u2019 risk profile. This requirement of risk profiling goes to the very root of suitability of investment advice as clients are required to get the investment advice based on their risk profile. Exposing the existing clients to such advice, which has no co-relation to their risk profile, is against the interest of those investors. Further, the very nature of the investment advisory activity being practiced by the Noticee has been found to be fraudulent and in violation of the provisions of PFUTP Regulations and IA Regulations\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">[Dezire Research, In re, WTM\/MB\/WRO\/WRO\/13050\/2021-22, decided on 20-08-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><span style=\"color: #003366;\">Agatha Shukla, Editorial Assistant has reported this brief.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities and Exchange Board of India (Sebi): Madhabi Puri Bach, Whole Time Member, on not finding any justifiable reason to revoke or <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[46849,32418,29785,2563],"class_list":["post-253274","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-interim-ex-parte-order","tag-investors","tag-law","tag-SEBI"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEBI | On not finding any justifiable reason to revoke interim ex-parte order, continues to stand--Protects the interests of investors | SCC Times<\/title>\n<meta name=\"description\" content=\"Investors\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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| Duping investment advisory, non-co-operation in inspection, blaming undocumented employees, request to de-freeze account with Rs 1,298 | Convoluted statements and demands- Affirms Interim Order","author":"Editor","date":"September 3, 2021","format":false,"excerpt":"Securities Exchange Board of India (SEBI): Madhabi Puri Bach, Whole Time Member, while affirming ex-parte ad Interim Order on not finding any justifiable reason to revoke or modify the directions against the Noticee held her liable for various provisions of the SEBI Act, the IA Regulations and the PFUTP Regulations.\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":253658,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/04\/fraudulent-trading\/","url_meta":{"origin":253274,"position":1},"title":"SEBI | A \u2018no go show\u2019&#8211;Ex-CNBC anchor, family in quagmire for fraudulent trading-Affirms interim order","author":"Editor","date":"September 4, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): Madhabi Puri Buch, Whole Time Member, while affirming the interim order, rejected all the submission of the Noticees, on the ground that they have prima facie employed a fraudulent scheme to execute the impugned trades, resulting in the prima facie contravention of the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case 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The facts in the instant case are such that the company PDS\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":362114,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/09\/30\/sebi-on-partners-liability-in-partnership-firm\/","url_meta":{"origin":253274,"position":3},"title":"All partners have unlimited liability for acts of partnership firm irrespective of their role or profit share: SEBI","author":"Nikita","date":"September 30, 2025","format":false,"excerpt":"With respect to noticee\u2019s liability as a partner, the noticee submitted that she resigned within short span of time and did not receive any remuneration or profit from the firm. Further, she was not a part of decisions or involved in day-to-day affairs of the firm.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"partners liability in partnership firm","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/partners-liability-in-partnership-firm.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/partners-liability-in-partnership-firm.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/partners-liability-in-partnership-firm.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/partners-liability-in-partnership-firm.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":288426,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/04\/03\/sat-reverses-sebis-order-in-arshad-warsis-pump-and-dump-case\/","url_meta":{"origin":253274,"position":4},"title":"SAT reverses SEBI&#8217;s order in Arshad Warsi&#8217;s pump and dump case","author":"Editor","date":"April 3, 2023","format":false,"excerpt":"Securities Appellate Tribunal: In the instant appeal filed against the ex parte ad-interim order passed by the Whole Time Members (WTM) of Securities Exchange Board of India (\u2018SEBI\u2019) in Arshad Warsi's case, the two-member bench of Tarun Agarwal, J. (Presiding Officer) and Meera Swarup (Technical Member), of Securities Appellate Tribunal,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"SAT","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":252779,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/17\/sebi-zee-insider-trading-interim-ex-parte-order-bars-15-entities\/","url_meta":{"origin":253274,"position":5},"title":"SEBI | ZEE insider trading: Interim ex-parte order bars 15 entities","author":"Editor","date":"August 17, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): Madhabi Puri Bach, (Whole Time Member) considering the impending danger to the interests of the investors passed an interim ex-parte order restraining all the 15 entities including Zee Entertainment Enterprises Ltd (ZEEL) from buying, selling or dealing in securities, either directly or indirectly,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/253274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=253274"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/253274\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=253274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=253274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=253274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}