Corrigendum to the Final Order in the matter of Globex Money Research, Prop. Palkesh Khandelwal
- Order No.WTM/AB/WRO/WRO/26383/2023-24
Ratio decidendi
The rule this decision rests on
A person who provides advice relating to investing in, purchasing, selling or otherwise dealing in securities or investment products, or advice on investment portfolios containing them, whether written, oral or by other means, for the benefit of a client in lieu of consideration, is an "Investment Adviser" under Regulation 2(1)(m) of the IA Regulations, 2013. This includes entities holding themselves out as investment advisers. Where payments for investment advisory services are received in bank accounts whose beneficiary is the noticee, those payments establish that the noticee was engaged in the business of providing investment advice to clients for consideration, and so was acting as an investment adviser under Regulation 2(1)(m).
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/AB/WRO/WRO/26383/2023-24 CORRIGENDUM TO THE FINAL ORDER IN RESPECT OF MR. PALKESH KHANDELWAL PROPRIETOR OF M/S. GLOBEX MONEY RESEARCH IN THE MATTER OF M/S. GLOBEX MONEY RESEARCH
1. SEBI had passed a final order in respect of Mr. Palkesh Khandelwal proprietor of M/s. Globex Money Research on May 10, 2023, bearing order no. ‘WTM/AB/WRO/WRO/26354/2023-24’ (‘Final Order’). 2. In the Final Order, in para 10, due to inadvertent error, the name of the Noticee has been wrongly mentioned. In view of the above, para 10 of the Final order shall be read as under: “………10. I note that if an entity is engaged in providing advice relating to investing in, purchasing, selling or otherwise dealing in securities or investment products, and advice on investment portfolio containing securities or investment products, whether written, oral or through any other means of communication for the benefit of the client in lieu of consideration, including entities which are holding themselves out as investment advisers, are covered by the definition of “Investment Adviser” as given in Regulation 2(1)(m) of the IA Regulations, 2013. As noted above, Rs.60,83,703.82 were received in the aforesaid bank accounts whose beneficiary was the Noticee. As noted in the previous paragraph, the payments received in the bank accounts of the Noticee, were in lieu of the investment advisory services provided by M/s. Globex Money Research. Hence, I find that M/s. Globex Money Research and its proprietor Mr. Palkesh Khandelwal, were engaged in the business of providing investment advice to their clients, for consideration, and thus, acting as investment advisers, as defined under Regulation 2(1)(m) of the IA Regulations, 2013……….”
3. The Final Order shall always be read along with this ‘Corrigendum’. 4. A copy of this Corrigendum shall be served upon the Noticee, all recognised stock exchanges, depositories, the Registrar and Share Transfer Agents of all Mutual Funds alongwith the copy of the Final Order.
Sd/- Place: Mumbai ANANTA BARUA Date: May 11, 2023 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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