SEBI Bans Arvind Rameshwar Waghmare, Proprietor of JSR Makers for 2 years for Illegal Investment Advisory
Moneylife Digital Team 30 October 2023
Market regulator Securities and Exchange Board of India (SEBI) has barred for two years Arvind Rameshwar Waghmare (noticee), the sole proprietor of JSR Makers for providing illegal investment advisory services. Mr Waghmare has also been slapped with a fine of Rs1 lakh and has been asked to refund Rs26.24 lakh the money received from   complainants,  investors, clients, as fees in respect of its unregistered investment advisory activities.
 
In the order, Dr Anitha Anoop, chief general manager(CGM) of SEBI, says, Mr Waghmare, proprietor of JSR Makers, was a an investment  adviser. "However,  neither JSR  Makers nor  its  proprietor  were registered  with  SEBI  in  the  capacity  of  investment  adviser. I  find  that  these activities  were  being  carried  out  by  the  noticee  without  obtaining  the  necessary certificate of registration as an investment adviser and therefore, the Noticee has violated Section 12(1) of the SEBI Act along with Regulation 3 of the IA Regulations.  
 
A complainant, vide email to SEBI had alleged that he had transferred Rs50,000 to JSR Makers in order to open a demat account and for investments for  which  a  profile  was  generated.  However, after making the payment, the complainant was neither given the details of his account nor was the noticee responding to him. To substantiate his allegation, the complainant also provided the  documentary  evidence  of  the  payments  made  by  him  to  account  number 502xxxxxxxx353 with  HDFC  Bank.
 
The complaint also mentioned the website of the noticee was www.jsrmaker.in. The examination by SEBI revealed that the said website was existing earlier, but later became inactive.
 
Further, the complaint contained details of the bank account no 502xxxxxxxx353 of Mr Waghmare which was held with HDFC Bank, wherein payment was made by the complainant for the advisory services. The account was in the name of JSR Makers, a sole proprietorship firm. Mr Waghmare had signed the account opening form (AOF) and other documents and had furnished his know-your-customer (KYC) documents as proprietor of the firm. The declaration for online Shop & Establishment Intimation submitted to the bank, it was also seen that Mr. Waghmare was the proprietor of JSR Makers.
 
The market regulator on examination of the extracted pages of the website observed that the noticee was engaged in providing and offering investment advisory services through its website. The website was providing various services for consideration. The pricing of their services varied according to the type of plan basic, HNI, Index Option, Index Future, BTST, Premium, etc. The fee charged was dependent on the period of subscription i.e monthly Rs.8,500, quarterly Rs18,000, half-yearly Rs28,000 and yearly Rs46,000.
 
SEBI ordered Mr Waghmare, proprietor of JSR Makers, to refund Rs26.24 lakh within three months collected as fees for investment advisory from various investor-clients.
 
Mr Waghmare is also restrained from selling assets, properties, and mutual funds, shares, and securities held by them in demat and physical form except for the sole purpose of making the refunds.
 
The Noticee, Mr Waghmare, proprietor of JSR Makers, shall not  undertake,  either during or after the expiry of the period of debarment, either directly or indirectly, investment advisory services or any activity  in  the  securities market without obtaining a certificate of registration from SEBI as required under the securities laws.
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