An order passed in the absence of any rebuttal from noticees on the allegations made – THE SECURITIES AND EXCHANGE BOARD OF INDIA
An ex-Parte ad-interim order issued against the noticee to respond to the various allegation of operating unregistered investment advisory activities and violating Section 12(1) of SEBI read with regulation 3(1) of the SEBI regulations,2013 and the order contained various allegations of acting fraudulently and manipulative and violating f provisions of Section 12A (a), (b) & (c) of the SEBI Act, 1992 and regulations 3 (b), (c) & (d) and regulations 4(1) and 4(2)(k) of the SEBI regulations,2013. following this order proceedings were started against the noticees and the order was passed by S. K. MOHANTY (whole time member) in application no.WTM/SM/WRO/WRO/14717/2021-22.
The interim order contained various observations and the complaint made by Mr. Vijay Nikam(complainant ) and it was observed that that Billionaire Solutions advertised itself as one of the best Stock Advisory of India who caters & delivers the best stock recommendation in Equity Market and offering recommendations in various stock market solutions. Through this order, the noticees were given ample opportunity to make a rebuttal against the following allegations but no response came from the noticee. Hence it was clear that the principles of natural justice have been complied with adequately in the present matter, and as the Noticees have preferred to not participate in the present proceedings so the member decided to handle the proceedings on a merit-based.
In the proceedings, it was found out that the noticee was engaged in advising in an unauthorized manner, and from the website of the firm it was found out that the notice was offering various service packages to investors at large for enabling them to invest in securities which were nothing but purely an act in rendering services of investment advisory.
The member found the activities/ representations as were being made by the Noticees without holding the certificate of registration as IA are in violation of Section 12(1) of the SEBI Act, 1992 read with regulation 3(1) of the IA Regulations, 2013 and the above misleading representations made by the Noticees are deceptive and fraudulent and are well covered within the definition of “fraud” defined under regulation 2(1)(c) of the PFUTP Regulations, 2003. Hence the noticees were found to be in clear violations of rules and regulations mentioned above and also in violation of regulation 4(2)(k) of the PFUTP regulations,2003, and order with directions issued against the noticees .
Order reviewed by Naveen Sharma