An individual on Friday settled proceedings with markets regulator Sebi in a case pertaining to alleged violation of norms for investment advisers after paying Rs 28.6 lakh as settlement charges.
The regulator agreed to settle the proposed adjudication proceedings in the case related to alleged violation of provisions of IA (Investment Adviser) regulations as well as code of conduct prescribed under RA (Research Analysts) norms, after it was approached by the applicant (Amit Mohan Jeswani) with a plea under the settlement regulations.
In its settlement order, Sebi disposed of the adjudication proceedings initiated against Jeswani issued through a show cause notice in May 2021.
The regulator had conducted an inspection to examine the compliance with the regulatory requirements as prescribed under the provisions of RA regulations during the period April 2018 to March 2019.
In the show cause notice, it was alleged that the applicant was selling model portfolio products to his clients which is against the defined responsibility and professional standards of research analysts.
Further, it was observed that the applicant was not registered as an investment adviser with Sebi, but was introduced to the clients as an entity providing 'Advisory Services'.
Pursuant to this, the regulator had initiated the proceedings and issued a show cause notice (SCN) to the applicant.
A High Powered Advisory Committee (HPAC) approved Rs 28,60,000 as settlement amount. Besides, it formulated a non-monetary settlement term -- restraining the applicant from obtaining any other registration with Sebi for a period of 3 years.
The individual proposed payment of the amount towards settlement of the proceedings without admitting or denying any violation on his part.
''The applicant also agreed for voluntary compliance of non-monetary settlement term,'' the order added.
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