Maxgrowth Capital case: Sebi issues ₹15.61 lakh recovery notice
PremiumThe notice came after -- Maxgrowth Capital -- failed to pay the fine imposed on it by the Securities and Exchange Board of India (Sebi)
Capital markets regulator, Securities and Exchange Board of India (Sebi) sent a recovery notice to Maxgrowth Capital for misutilisation of client securities and other disclosure lapses.
The notice that was issued on Wednesday came after Maxgrowth Capital failed to pay the fine imposed on it by Sebi.
Maxgrowth was directed to pay a fine of ₹15.61 lakh within 15 days, which includes interest, all costs, charges and expenses.
The regulator had said that in case of non-payment, it will recover the amount by attaching moveable and immoveable properties of the entity, adding that the entity will also face arrest and attachment of their bank accounts.
The regulator levied fines amounting to ₹15 lakh on Maxgrowth Capital through its order issued in April this year.
Maxgrowth raised funds by pledging shares of its clients, resulting in the misutilisation of clients' securities, Sebi observed in its inspection carries out from April 2018 to June 2019.
Further, it was able to produce records of intimation sent to clients regarding pledging of the securities.
In another case, an individual has been sent a recovery notice by the market watchdog in a case related to violating investment adviser rules in the matter of sharetipsinfo.com.
The notice came after Sharetipsinfo.com proprietor Rishi Sakhuja failed to pay the fine levied on it by Sebi.
Sakhuja has been directed to pay a fine of ₹13.09 lakh within 15 days, which includes interest, recovery cost, charges and expenses.
The markers regulator had slapped a fine of ₹12 lakh on Rishi Sakhuja for carrying out investment adviser activities without the Sebi registration, as mandated under the rule, between April 2013 and November 2017, in its order in November 2021.
Sakhuja had collected a total fee of ₹4.56 crore from over 7,400 clients through such service, said Sebi.
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