Finassure Financial Services Pvt. Ltd. ... vs Sebi

Date of Decision: 20.03.2023

Misc. Application No. 363 of 2023 And Appeal No. 283 of 2023

1.

Finassure Financial Services Pvt. Ltd. 303-304, Gold Arcade, 3/a New Palasia, Indore, Madhya Pradesh- 452 001 (through its erstwhile director Mr. Amit Sharma)

2. Amit Sharma 401, Princess Landmark Ratlam Kothi, Indore- 452 001 ...Appellants

Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051 ...Respondent

Mr. Kunal Katariya, Advocate with Mr. Neerav B Merchant and Mr. Nadeem M. Shama, Advocates i/b Thakordas and Madgavkar for the Appellants.

Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for the Respondent-SEBI.

CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member 2

Per: Justice Tarun Agarwala, Presiding Officer (Oral)

1. We have heard the learned counsel for the parties. The

present appeal has been filed against the order dated February

02, 2023 passed by the Whole Time Member ("WTM" for

convenience) of the Securities and Exchange Board of India

("SEBI" for convenience) debarring the appellants from

accessing the securities market and also directing them to refund

of the money collected from the investors under the Investment

Advisory Services.

2. We find that the impugned order was passed ex-parte

without serving the show cause notice. In this regard upon a

perusal of the impugned order we find that an attempt was made

by the respondent to serve the show cause notice at the wrong

address. This fact is admitted by the respondent.

3. In view of the aforesaid, the impugned order, being an ex-

parte order, cannot be sustained as no opportunity of hearing

was given to the appellants and is quashed. The appeal is

allowed. The matter is remitted to the WTM to pass a fresh

order in accordance with law. In this regard the appellants will

appear before the WTM on April 10, 2023 on which date the

appellants will be served with the show cause notice and the 3

matter will proceed from there onwards in accordance with law.

The misc. application is disposed off accordingly.

4. This order will be digitally signed by the Private Secretary

on behalf of the bench and all concerned parties are directed to

act on the digitally signed copy of this order. Certified copy of

this order is also available from the Registry on payment of

usual charges.

Justice Tarun Agarwala Presiding Officer

Ms. Meera Swarup Technical Member PRERNA Digitally by PRERNA signed 20.03.2023 PK MANISH Date:

MANISH KHARE

KHARE 2023.03.21 16:21:05 +05'30'