Prowise Capital’s Ex-partner Swati Purwar Ordered To Refund Rs2.23 Lakh to Investors

Moneylife Digital Team 19 August 2025

Investor Interest

Market regulator Securities and Exchange Board of India (SEBI) has directed Swati Purwar, a former partner of Prowise Capital, to refund Rs2.23 lakh received by the firm from investors towards unregistered investment advisory services. The refund liability is to be discharged jointly and severally with Prowise Capital and its partners, the market regulator says.

SEBI had earlier passed an interim order on 27 July 2020, followed by a final order on 14 June 2021, against Prowise Capital and its partners, including Ms Purwar. The order held them guilty of carrying out unregistered investment advisory activities in violation of Section 12(1) of the SEBI Act, 1992, the SEBI (Investment Advisers) Regulations, 2013 and provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.

The final order also restrained Ms Purwar and others from accessing the securities market for two years from the date of the refund. This significantly restricted their participation in the market until compliance with the refund direction.

However, Ms Purwar challenged the final order before the securities appellate tribunal (SAT). She claimed that neither the interim nor the final order was served on her and that she became aware of the matter only through an internet search.

SAT, by its order dated 15 January 2025, set aside the final order insofar as it applied to Ms Purwar and remanded the matter back to SEBI for fresh consideration. This provided her with an opportunity to present her case with supporting documents.

During the proceedings, Ms Purwar submitted that she was a partner of Prowise Capital only for a limited period between 15 January 2016 and 15 March 2016. She supported her claim with a partnership deed, resignation letter and affidavits from co-partners.

SEBI accepted this submission and restricted her liability to the amount collected during her tenure which was Rs2.23 lakh. This ensured that her responsibility was limited only to the period when she was associated with the firm.

Accordingly, SEBI directed Ms Purwar to refund the said sum, along with the firm and its partners. Since the refund was not made earlier, recovery proceedings had been initiated. However, in light of the SAT’s order, SEBI has allowed Ms Purwar to discharge her liability by depositing the said amount directly with the regulator.

Comments