Sebi Bans Capital Heed Financial Owner From Mkts For Violating Investment Adviser Rules

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Sebi has banned the sole owner of Capital Heed Financial Research Shailendra Sen from the capital markets for three years for providing false information to the regulator in his application to register as an investment adviser.

When calculating the exclusion period, Sebi said that the restriction period already experienced by Sen through the interim order will be adjusted.

In an interim order in November 2019, the regulator excluded Sen from capital markets to other directions.

In his final order issued on Tuesday, Sebi noted that Sen, when he asked the regulator to register as an individual investment adviser, was under a legal obligation to disclose his previous activities in relationship with the securities market, including advice to unauthorized investors. activities undertaken by his partnership company in a true and correct sense to the watchdog of the markets.

However, he knowingly made a false statement in his application form for registration as an investment adviser, stating that he was not engaged in any investment advisory services prior to filing his application, thus intentionally provided false information to Sebi in violation of the code of conduct. specified rules relating to sub-investment advisers (IAs), he added.

In addition, Sen also failed to disclose the fact of his prior involvement in Cash Cow’s business as a partner of the company, even after he was issued with Capital Heed’s registration certificate and such failure to act. its part disclosing such information, which was not disclosed at the time of obtaining registration, led to a violation of the IA Regulations, the order noted.

At the same time, he falsely told investors that he can provide portfolio management services (PMS) although he does not have a registration certificate from Sebi to do so, thus violating PMS standards, has he added.

As a result, the regulator has prevented Sen from “accessing the securities market and further banned from buying, selling or dealing in securities, directly or indirectly, or being associated with the securities market. in any way, for a period of three years ”.

In addition, he was asked to resolve any complaints, if any, pending against him in SCORES and otherwise, within the 30 day time limit.

If the instructions are not followed, access to the capital markets will be prohibited for an additional two years or during this period all complaints will be resolved, whichever is later, Sebi said.

In a separate order, the regulator banned Research Infotech from capital markets for four years.

When calculating the blackout period, the hardship period already experienced due to the interim order will be adjusted, Sebi said.

The regulator, by an interim order in December 2019, had banned Research Infotech from capital markets to other directions.

Jasmeet Kaur Bagga is the sole owner of Research Infotech.

In its final order, Sebi noted that Research Infotech openly dismissed the interest of its clients by committing assured profits, charging high and unreasonable fees, extorting money from clients under various self-created pretexts, involving dishonest practices in identifying identifiers and passwords. in order to access clients’ trading accounts, among others.

He acted in a deceptive manner in order to entice customers to purchase his products or investment packages to maximize income.

By engaging in such activities, the entity violated the code of conduct provisions prescribed for AI rules and PFUTP (Prohibition of Fraudulent and Unfair Business Practices) standards, Sebi said.

(PTI)




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