Mr. Manish Lalwani vs Sebi
- CitationAppeal No.309 of 2023
Ratio decidendi
The rule this decision rests on
A person who carries on investment advisory services without obtaining a certificate of registration under Regulation 3 of the SEBI (Investment Advisers) Regulations, 2013, contravenes that requirement; where such non-registration is admitted, the finding that the person was engaged in investment advisory services without registration discloses no error of law and the appeal against it fails. Where the quantum of the amount to be refunded is disputed on the basis of documents not before the Whole Time Member, the appellate body may dispose of the appeal on the admitted contravention while remitting the question of quantum to the Whole Time Member, directing the appellant to place proof of fees collected on affidavit and requiring a fresh order on that material within a fixed period.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision: 13.4.2023
Appeal No.309 of 2023
Mr. Manish Lalwani 345, Dwarkapuri, in front of Dr. KB Rajpal, Indore, Madhya Pradesh - 452001. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, BKC, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra. ...Respondent
Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent.
CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member
Per: Justice Tarun Agarwala, Presiding Officer (Oral) 2
1.
The present appeal has been filed against the order
dated 18th January, 2023 passed by the Whole Time
Member ('WTM' for short) holding that the appellant
was engaged in the Investment Advisory Services
without obtaining a certificate of registration under
Regulation 3 of the Securities and Exchange Board of
India (Investment Advisers) Regulations, 2013.
2. Admittedly the appellant was carrying on the
investment advisory services without obtaining
registration under Regulation 3 of the Investment
Advisory Regulations and, therefore, to that extent the
order of the WTM does not suffer from any error of
law.
3. It was urged that the amount directed to be refunded
by the WTM is erroneous. In this regard, certain
documents have been filed by the appellants to show
that the amount collected from the clients towards 3
advisory services was far less than what has been
depicted in the impugned order.
4. In view of the admitted fact that the appellant was
carrying on Investment Advisory Services without
getting itself registered under Regulation 3 of the
Investment Advisory Regulations the appeal fails and is
dismissed.
5. Considering the aforesaid, while dismissing off the
appeal we direct the WTM to reconsider the quantum to
be refunded by the appellant. We direct the appellant
to file an appropriate application on an affidavit within
three weeks from today submitting proof of the fees
collected from the clients which is required to be
refunded as per the impugned order. Such application
shall be considered by the WTM and appropriate order
shall be passed within four weeks thereafter.
6. This order will be digitally signed by the Private
Secretary on behalf of the bench and all concerned 4
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 RAJALAK Digitally signed by SHMI RAJALAKSHMI
13.4.2023 HARISH HARISH NAIR NAIR Date: 2023.04.19 14:57:29 +05'30' RHN
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