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Sebi bans Capital Heed proprietor from taking fresh clients for investment advisory services

A Sebi probe also found that Sen, at the time of seeking registration as an investment adviser with the regulator, has declared that he was not engaged in investment advisory services prior to making this application.

PTI|
Nov 19, 2019, 08.37 PM IST
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New Delhi: Sebi has barred Capital Heed Financial Research's proprietor Shailendra Sen from taking any fresh clients for investment advisory services as he provided false information to the regulator in his application for registration as investment adviser.

Besides, the markets regulator prima facie, found that Sen, as one of the partner of Cash Cow Broking & Advisory Solution, was carrying out investment advisory services from August 2014 till October 2017 without obtaining the necessary registration as mandated under the Investment Adviser (IA) Regulations.

A Sebi probe also found that Sen, at the time of seeking registration as an investment adviser with the regulator, has declared that he was not engaged in investment advisory services prior to making this application. Also, he did not disclose his activities as the partner in the partnership firm Cash Cow to Sebi.

On the basis of submitting false declaration and other documents for registration, Sebi granted registration to Sen.

"...prima facie, by knowingly providing false information to Sebi in his application for registration as IA, the noticee (Sen) has, prima facie, violated ...the IA Regulations," Sebi said in an order passed on Monday.

Besides, Sen misrepresented investors that he can provide portfolio management services (PMS), although he does not hold the certificate of registration from Sebi to do so. By indulging in such activity, he violated the PMS regulations.

Consequently, Sebi said that Sen and "any person while working under him or under his instructions as employee or otherwise, shall cease and desist from soliciting/ acquiring any fresh clients for investment advisory services, directly or indirectly, till further orders".

However, the regulator said that at the services for which the existing clients have already made payment to Sen shall be duly delivered to these clients and no renewal of these services will be permitted.

The regulator has directed Sen to remove all references regarding his holding out as a portfolio manager made by him through any media.

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