SEBI Cancels Investment Advisory Registration of DS Capital Ventures
Moneylife Digital Team 31 January 2023
Market regulator Securities and Exchange Board of India (SEBI) has cancelled investment advisory registration of DS Capital Ventures Pvt Ltd for violating rules and regulations. SEBI investigation found that DS Capital committed serious contraventions including not addressing complaints on the SEBI Complaints Redress System (SCORES), changing directors, and changing the registered address without prior approval of the market regulator. 
 
In the order issued by Geetha G, chief general manager of SEBI, says “I observe that the material available on record unequivocally highlights the lapses by the entity while conducting its operations as a registered IA. Further, the violations committed by the entity, as discussed above in this order, are considered serious in nature for a registered intermediary in the securities market. I find that, at the very least, an intermediary, ought to respond to the communication sent by the regulator and be available at the address furnished to the regulator and if there is a failure in this regard, it is not entitled to hold the authorization issued to it."
 
After conducting investigation, SEBI issued a show cause notice. However, DS Capital failed to reply to the notice. Since the entity did not respond to further notices SEBI decided to roll back the registration as an investment advisory. 
 
SEBI also observed that DS Capital failed to produce the documents sought for the purpose of inspection and were not traceable at the addresses available on records. Also, 17 complaints against the entity were pending for more than six months, which were not redressed.
 
(Order: QJA/GG/IMD/IMD-II_DOF7/23252/2022-23 Date: 30 January 2023) 

 

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