Rajesh Ranjan vs Sebi

Date of Decision: 12.01.2023

Misc. Application No. 1640 of 2022 And Misc. Application No. 1641 of 2022 And Appeal No. 42 of 2023

Rajesh Ranjan No. 3, 2nd Floor, D Group Layout, Near Arch Andra Halli, Bangalore- 560 091 ...Appellant

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. Aditya Mehta, Advocate with Mr. Saurabh Bachhawat, Advocate and Mr. Deepak Dhane, Advocates i/b. Corporate Pleaders for the Appellant.

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

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

Per: Justice Tarun Agarwala, Presiding Officer (Oral) 2

1.

We have heard the learned counsel for the parties. The

present appeal has been filed questioning the directions issued

by the Whole Time Member ("WTM" for convenience) of the

Securities and Exchange Board of India ("SEBI" for

convenience) dated April 22, 2022 as well as email issued

consequently on September 12, 2022 by the Manager of SEBI.

2. The facts leading to the filing of the present appeal is, that

the appellant was carrying on the business of being a research

analyst without being registered under the relevant regulations.

Consequently, the WTM passed an impugned order dated April

22, 2022 giving an option to the clients of the appellant to take

refund of the fees or consideration paid by them. It is alleged

that the appellant reached out to the clients and paid the refund

to some of the clients who could be contacted. In this regard, a

certificate has been issued by the Chartered Accountant. The

Manager of SEBI by impugned email dated September 12, 2022

has rejected the contention of the appellant on the ground that

he was required to refund the entire amount.

3. In our view, the email of the Manager of SEBI cannot be

sustained and we find he is not appropriate authority to consider

the matter and issue such directions, namely, whether the 3

compliance has been made by the appellant or not. Such

direction only be passed by the WTM. Consequently, the email

is quashed. The appeal is allowed. The matter is remitted to the

WTM to pass a fresh order on the issue of compliance. The

misc. applications are disposed of 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 signed 12.01.2023 MANISH by PRERNA MANISH KHARE PK Date: 2023.01.13 KHARE 14:56:06 +05'30'