TaxTMI 
TaxTMI 
2023 (7) TMI 1605
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....nst two orders. By the first order dated April 26, 2023 the Chief General Manager ("CGM" for convenience) of the Securities and Exchange Board of India ("SEBI" for convenience) has restrained the appellant and another noticee from accessing the securities market for a period of three years and further restrained from undertaking either directly or indirectly investment advisory services or any activity in the securities market for a period of three years. The CGM further directed the appellant to resolve all complaints pending on the SCORES platform and further refund a sum of Rs. 1,53,75,252/- along with noticee no. 2 received as consideration from investors/ client in respect of the unauthorized investment advisory activities against this....
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....ith another unregistered connected entity noticee no. 2 thereby violating Regulation 3 and 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 ("PFUTP Regulations" for convenience) read with Regulation 15(1) of the IA Regulations. 4. Noticee no. 2 was charged of devising a scheme with noticee no. 1 to defraud the investors by providing its investment advice on products relating to securities market without having a registration under the IA Regulations. On the same facts the designated authority under Regulation 25(1) of the Intermediaries Regulations issued a show cause notice to show cause why appropriate recommendations for the alleged violations should not be made. The ....
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....ellant. We are satisfied with the findings given by the CGM that the appellant was engaged in providing assured returns and making promises of assured returns which was apparently fraudulent and, therefore, violative of Regulations 3 and 4 of the PFUTP Regulations. 8. We also find that the appellant along with noticee no. 2 had devised a scheme to defraud the investors. In this regard, we find that noticee no. 2 was a proprietorship firm known as Algo System whose proprietor was the brother of the proprietor of the appellant. This proprietorship firm Algo System was not registered with SEBI under the IA Regulations. Evidence has come on record to show that Algo System was using the data of the appellant and giving unsolicited advice to t....
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.... "6(b) in case the applicant is an individual, he and all persons associated with investment advice are appropriately qualified and certified as specified in regulation 7. 7(2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations and persons associated with investment advice shall have, at all times a certification on financial planning or fund or asset or portfolio management or investment advisory services- (a) from NISM; or (b) from any other organization or institution including Financial Planning Standards Board India or any recognized stock exchange in India provided such certification is accredited by NISM.: Provided that....