Shivaay Investments, Ower and Co-Owners Fined Rs6 Lakh, Barred from Markets for Providing Illegal Investment Advisory
Moneylife Digital Team 26 October 2023
Market regulator Securities and Exchange Board of India (SEBI) has banned Shivaay Investments, its owner and two co-owners, for two years and finned Rs6 lakh for providing investment advisory services. Shivaay Investments also offered guaranteed allotment under the initial public offering (IPO) against fees. SEBI asked them to refund Rs1.92 crore within three months collected from investors as fees for investment advisory.
 
In an order K Saravanan, chief general manager (CGM) of SEBI, says, “I conclude that Shivaay Investment, Rupaben K Bhatt (owner), Kevinbhai Bhatt and Jayarajbhai Vala (co-owners) acted as an investment advisor without obtaining mandatory registration from SEBI and for this act, they have violated the provisions of Section 12(1) of SEBI Act read with Regulation 3(1) of the Investment Advisor Regulations. I further conclude that Shivaay Investment, through its website, disseminated information which are deceptive and misleading in nature, thereby inducing the investors to deal in securities.” 
 
This issue came to light when one Chirag Sadhu, an investor, filed a complaint saying he paid Rs77,000 to Shivaay Investments on 16 December 2020 concerning the IPO of Mrs Bector Food Specialties Ltd. However, Shivaay Investments failed to refund the money the complainant paid and blocked his contact number. The complainant has also provided the bank account details of the broker, serviced by Axis Bank, where the complainant paid the money.
 
During its investigation, SEBI found that the website www.shivaayinvestment.com belongs to Shivaay Investments. The broker claims to have been offering deals in the off-market IPOs and current IPOs at attractive prices with its confirmation.
 
Shivaay Investments has been providing advisory services for equity and commodity segments, including intra-day, weekly and monthly expiry, future and options (F & O). It is mentioned explicitly on the website that it is known for its unique portfolio management services and low-risk investment advisory services, which can maximise the profit of its investors with the minimum risk profile, and its unique ideas and trading strategies help its investors earn higher profits.
 
SEBI found a bank account of Shivaay Investments in Axis Bank, which showed one Jaydeepgirj Goswami as the authorised signatory for the account. Mr Goswani, vide his e-mails on 9 August 2021 and 17 August 2021, contended that he was only working as a mediator and Shivaay Investment was owned by Ms Bhatt, Mr Bhatt and Mr Vala. Further, Mr Goswami has also submitted list of clients to whom the advisory services were provided and the respective amounts received from such clients.
 
After perusing the available records, SEBI ordered Shivaay Investments to refund Rs1.92 crore within three months collected as fees for investment advisory from various investor clients.
 
Shivaay Investments, its owner and co-owners are 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.
 
They are also restrained from associating themselves as a director or key managerial personnel with any listed public company or any public company that intends to raise money from the public or any intermediary registered with SEBI for two years.
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