August 20, 2013
PR No. 076/2013
SEBI Crackdown On Entities Engaged in Unregistered Investment Advisory And Portfolio
Management Activities through Short Message Services (SMSs)
SEBI had noticed that certain entities were offering intraday tips and stock advisory services to investors
through Short Message Services (SMSs) via mobile phones. SEBI , as part of its investigation, obtained
details of the call data records of the telephone numbers used for sending such SMSs. Thereafter, SEBI
conducted a surprise visit on the premises of one Mr. Imtiyaz Hanif Khanda and one Mr. Vali Mamad Habib
Ghaniwala. It was prima-facie observed that the said persons through their proprietary concerns viz. M/s
Right Trade,M/s Sai Traders, M/s Bull Trader and M/s Laxmi Traders were providing investment advice
without being registered with SEBI. Further, M/s Right Trade had solicited business of portfolio management
services from the general public without being registered as a portfolio manager with SEBI. The entities had
also made misrepresentations by making unrealistic claims, false statements such as having office in various
countries, FII based calls, jackpot calls, etc., and they also made representation in reckless and careless
manner in their messages and website suggesting facts which are not true. By their acts and omissions they
have prima-facie solicited, enticed and induced investors to deal in securities on the basis of their investment
advices, stock trade tips, etc
In view of the above, The Whole Time Member, Shri Rajeev Kumar Agarwal passed an ad-interim ex-parte
order dated August 20, 2013 debarring Mr. Imtiyaz Hanif Khanda and Mr. Vali Mamad Habib Ghaniwala
from buying, selling or dealing in the securities market, either directly or indirectly, in any manner
whatsoever till further orders. Further, the above entities including their proprietary concerns were directed
to
| (a) |
to cease and desist from acting as an investment advisors and portfolio managers and not to solicit or
undertake such activities or any other unregistered activity in the securities market, directly or indirectly, in
any manner whatsoever;
|
| (b) |
immediately withdraw and remove all advertisements, representations, literatures, brochures, materials,
publications, documents, websites, etc. in relation to their investment advisory and portfolio management
activities or any unregistered activity in the securities market. |
Mumbai
August 20, 2013
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For full copy of order against BULL TRADER, click here.
For full copy of order against IMTIYAZ HANIF KHANDA, click here.
For full copy of order against LAXMI TRADERS, click here.
For full copy of order against RIGHT TRADE, click here.
For full copy of order against SAI TRADERS, click here.
For full copy of order against VALI MAMAD HABIB GHANIWALA, click here.
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