Securities and Exchange Board of India (“SEBI”) had initiated Enquiry Proceedings against M/s Money Market Manthan Financial Services, Proprietor: Vicky Kamriya (“Noticee”), a registered Investment Adviser
In the Enquiry Report, the DA had observed the following violations
Failure to furnish complete information to SEBI in violation of Regulations 13(a), 15(12), 25(1) and (2) read with Regulations 24(3), Clause 8 of the Code of Conduct specified under the Third Schedule read with Regulation 15(9) of the SEBI (Investment Advisers) Regulations, 2013 (“Investment Adviser Regulations, 2013”
Failure to maintain records of communications with clients during risk profiling and suitability assessment, selection of advisory products/ services in violation of Regulations 19(1) and (2) of the Investment Adviser Regulations, 2013
Divulgence of confidential information of clients through sharing of SCORES portal credentials with a third party in violation of Regulation 15(6), Clause 4 of the Code of Conduct specified under the Third Schedule read with Regulation 15(9) of the aforementioned Regulations.
Promising assured and unrealistic returns to its clients in violation of Regulations 15(1) of the Investment Adviser Regulations, 2013, Clauses 1 and 2 of the Code of Conduct specified under the Third Schedule read with Regulation 15(9) of the Investment Adviser Regulations, 2013, Sections
12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a), (b), (c) and (d), 4(1) and 4(2)(k) and (s) of the SEBI(Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (“PFUTP Regulations, 2003”)
Mis–representation and mis–selling of products/ services by the Noticee through its employees using fake names and designations, making false assurances, displaying fabricated client testimonials and claims regarding investment advice service performances on Noticee’s website, in violation of Regulation 15(1), Clause 1 of the Code of Conduct specified under the Third Schedule read with Regulation 15(9) of the Investment Adviser Regulations, 2013 and also Sections 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a), (b), (c) and (d), 4(1) and 4(2)(k) and (s) of the PFUTP Regulations, 2003
Failure to ensure compliance by its employees, with the qualification/ certification requirements contained under the Investment Adviser Regulations, 2013, in violation of Regulations 7, 15(13) and Clauses 1, 2, 3 and 8 of the Code of Conduct specified under the Third Schedule read with Regulation 15(9) of the aforementioned Regulations.
Failure to redress investor complaints received on SCORES including delay in submission of Action Taken Report (“ATR”) in violation of SEBI Circular No. CIR/OIAE/1/2014 dated December 18, 2014 (“Circular dated December 18, 2014”) read with Regulation 21 of the Investment Adviser Regulations, 2013
Failure to carry out adequate and appropriate risk profiling of its client including failure to communicate risk profiling form upon completion thereon in violation of Regulation 15(1) and Clauses 1, 2, 4, 5 and 8 of the Code of Conduct specified in Schedule III read with Regulations 15(9), 16(b)(iii), 16 (d)(i),16(d)(ii) and 16(e) of the Investment Adviser Regulations, 2013, and Sections 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a), (b), (c) and (d) of the PFUTP Regulations, 2003
Sale of multiple services and collection of unreasonably high advisory fees from its clients in violation of Regulations 15(1), 17(a), (b), (c), (d) and (e) of the Investment Adviser Regulations, 2013 and Clauses 1, 2 and 6 of the Code of Conduct specified under the Third Schedule read with Regulation
15(9) of the aforementioned Regulations and Sections 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a), (b), (c) and (d) of the PFUTP Regulations, 2003
Failure to make adequate disclosures to its clients regarding its association with other intermediaries, investing activities and trading, sharing of confidential information of its clients, etc. in violation of Regulations 18(1), (4) and (6) of the Investment Adviser Regulations, 2013 and Clauses 1, 2, 5 and 7 of the Code of Conduct specified under the Third Schedule read with Regulation 15(9) of the aforementioned Regulations.
Failure to ensure compliance with Anti–Money Laundering Policy on account of not having a ‘Principal Officer’ and failure to inform the Financial Intelligence Unit, New Delhi (“FIU”) regarding the said fact in violation of SEBI Circular No. ISD/CIR/RR/AML/1/06 dated January 18, 2006