{"id":253595,"date":"2021-09-03T10:00:47","date_gmt":"2021-09-03T04:30:47","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=253595"},"modified":"2021-09-03T09:46:47","modified_gmt":"2021-09-03T04:16:47","slug":"investment-advisory","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/03\/investment-advisory\/","title":{"rendered":"SEBI | 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"},"content":{"rendered":"

Securities Exchange Board of India (SEBI):<\/strong> 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.<\/p>\n

In the instant matter Meeshika Vishwakarma, Proprietor, Sai Proficient Research Advisory (Noticee) was a registered Investment Adviser (IA). It was alleged that IA was taking hefty fees from clients by guaranteeing assured returns, huge loss was incurred by clients due to inappropriate advice given by Sai Proficient, pressurizing the clients to buy multiple products and pay more amount, etc.<\/p>\n

The allegations against the Noticee were:<\/p>\n

    \n
  1. had offered expected\/sure profits to its clients and violated provisions of SEBI (Investment Advisers) Regulations,<\/li>\n
  2. did not resolve investor grievances as per prescribed timelines and did not cooperate with SEBI for inspection.<\/li>\n
  3. had also triggered violation of the Code of Conduct for Investment Advisers<\/li>\n<\/ol>\n

    Keeping in view the allegations, an interim order was passed against Sai Proficient and the proprietor for violation of SEBI Act 1992 (hereinafter referred to as SEBI Act)<\/em>, IA Regulation and SEBI (PFUTP) Regulations (hereinafter referred to as PFUTP Regulations).<\/em><\/p>\n

    The Tribunal while affirming the order stated,<\/p>\n

    \u201cSince there is prima facie violation of securities laws, there is a further urgent requirement that investors be insulated from the undesirable effects of further breach of securities laws and the code of conduct of the IA. Further, the Interim Order has been passed in order to maintain the status quo, so that on final adjudication after granting fair opportunity of hearing on merits, if the liability to repay is established, the possible direction in the final order does not become infructuous. Therefore, based on the facts and circumstance of the case, I find that the balance of convenience is not in favour of the Noticee. In view of the above, the request of the Noticee to consider allowing to continue rendering services as IA cannot be considered as this stage\u201d.<\/em><\/p>\n

    The Tribunal made interesting remarks while addressing to the facts and the behaviour of the Noticee prior and during and subsequent to the inquiry. It was of the opinion,<\/p>\n

    \u201c\u2026It is interesting to observe that if the suspicious employees wanted to misrepresent and deceive the amount\/fees from the client\/complainant should probably have been received in the suspicious employees account rather than Noticee\u2019s bank account which invariably is the beneficiary. Further, I also note that the Noticee has also not provided any documentary evidence making any clarification or warning or disclaimer in this respect to either to employees or to the clients\/investors\u201d.<\/em><\/p>\n

    While addressing the submissions of the Noticee it stated,<\/p>\n

    \u201cConsidering the dynamics of the market, the returns from the investment in the market are unpredictable, no matter how much and for how long the investment is made. Any information that puts out for the consumption of its existing and prospective clients has to be done with great responsibility and should be of such nature that it enables investors to take reasoned and unbiased decisions regarding their investment This act of the IA is nothing but prima facie appears to be an attempt to induce the client to subscribe to its advisory service by showing projected and expected return\/profit, which prima facie is an act to mislead the client as full disclosure is not made by the IA that the proposed investment of the client may incur loss. This act prima facie, appears to have done with an intention to bring in more customers and thereby increasing the income of the IA\u201d.<\/em><\/p>\n

    [Sai Proficient Research Investment Advisory, In re., WTM\/MB\/WRO\/WRO\/13178\/2021-22, decided on 27-08-2021]<\/p>\n

    \n

    Agatha Shukla, Editorial Assistant has reported this brief.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Securities Exchange Board of India (SEBI): Madhabi Puri Bach, Whole Time Member, while affirming ex-parte ad Interim Order on not finding any <\/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":[46907,29785,2563],"class_list":["post-253595","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-investment-advisory","tag-law","tag-SEBI"],"yoast_head":"\nSEBI | 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 | SCC Times<\/title>\n<meta name=\"description\" content=\"investment advisory\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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| On not finding any justifiable reason to revoke interim ex-parte order, continues to stand–Protects the interests of investors","author":"Editor","date":"August 26, 2021","format":false,"excerpt":"Securities and Exchange Board of India (Sebi): 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 prima facie level, was of the opinion that the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":256695,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/03\/sebi-assuring-profits-in-a-market-already-subjected-to-risk-debarred-from-the-market-for-subjecting-others-to-risk\/","url_meta":{"origin":253595,"position":1},"title":"SEBI | Assuring profits in a market already subjected to risk- Debarred from the market for subjecting others to risk","author":"Editor","date":"November 3, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): G. Mahalingam, Whole Time Member, while deciding an order was of the opinion that the Noticee, Samrat Trader and its proprietor Altamash Sheikh did not act honestly, fairly and in the best interests of its clients and in the interest of integrity of\u2026","rel":"","context":"In "Case Briefs"","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":253595,"position":2},"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 "Case Briefs"","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":260144,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/15\/billionaire-dream-turns-into-dread\/","url_meta":{"origin":253595,"position":3},"title":"SEBI | \u2018Billionaire\u2019 dream turns into dread-Unauthorsied investment advisory amounted to fraud & misrepresentation","author":"Editor","date":"January 15, 2022","format":false,"excerpt":"Securities Exchange Board of India (SEBI): S.K. Mohanty, Whole Time Member while affirming an ex-parte interim order of SEBI, was of the view that the activities of the Noticees, Billionaire Solutions Pvt. Ltd. (Sole proprietor Akash Jaiswal) was covered within the definition of \u201cfraud\u201d defined under regulation 2(1)(c) of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":243326,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/04\/noticing-unauthorised-activities-sebi-passes-ex-parte-order-against-national-stock-advisory-research-prohibiting-its-activities-in-stock-market\/","url_meta":{"origin":253595,"position":4},"title":"Noticing \u201cunauthorised activities\u201d, SEBI passes ex parte order against National Stock Advisory Research prohibiting its activities in stock market","author":"Editor","date":"February 4, 2021","format":false,"excerpt":"Security and Exchange Board of India (SEBI): Madhabi Puri Buch, (Whole Time Member) issued ex-parte order against National Stock Advisory Research (NSAR) on finding out its indulgence in unauthorised activities. SEBI had received a complaint against NSAR, a proprietorship firm of Neeraj S Lodhi alleging that NSAR was an unregistered\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":252900,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/19\/mutual-funds\/","url_meta":{"origin":253595,"position":5},"title":"SEBI | Carrying out mutual funds with DGP scheme and an Investment Adviser but with no registration | Orders to pay the amount along with several other restrictions","author":"Editor","date":"August 19, 2021","format":false,"excerpt":"Securities Exchange Board of India (SEBI): G Mahalingam, Whole Time Member, considering the factual chain and evidences directed the Noticees to cease and desist from sponsoring and\/ or carrying out activities of a mutual fund and as investment advisers, including the activity of representing through any media (physical or digital)\u2026","rel":"","context":"In "Case Briefs"","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\/253595","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=253595"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/253595\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=253595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=253595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=253595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}