Description

SEBI order under Section 12(3) of SEBI Act, 1992 against Investment Adviser Krishna Kumar Jaiswal for non-cooperation during inspection and failure to update contact details.

Summary

SEBI has issued an order under Section 12(3) of the SEBI Act, 1992 read with Regulation 30A of SEBI (Intermediaries) Regulations, 2008 against Krishna Kumar Jaiswal, Proprietor of Trade View (Registration No. INA000009074, PAN: AJWPJ4144R). The order stems from the Investment Adviser’s failure to cooperate during a scheduled inspection and non-compliance with the requirement to keep SEBI informed about changes in contact details as mandated under Regulation 13(b) of SEBI (Investment Advisers) Regulation, 2013.

Key Points

  • Krishna Kumar Jaiswal is a registered Investment Adviser with SEBI (Registration No. INA000009074)
  • During FY 2024-25, SEBI selected the theme “Advisory Fees collected by IAs from the Clients” for inspection
  • Inspection team from SEBI and BSE visited Bilaspur, Chhattisgarh on January 17, 2025
  • Noticee was not found at the registered address
  • Registered mobile number (ending with 90xxxx2958) was either switched off or not reachable throughout the day
  • Multiple follow-up attempts made in last week of January 2025 - phone remained unreachable
  • Emails sent to registered email (krishna.jaiswal88@gmail.com) on January 20 and January 27, 2025 received no response
  • BSE confirmed on February 6, 2025 that the Noticee was not reachable, though Annual Compliance reporting for 2023-24 and periodic reporting for March 31, 2024 & September 30, 2024 were submitted
  • Violation of Regulation 13(b) of SEBI (Investment Advisers) Regulation, 2013 which requires IAs to inform SEBI of any material changes in information including contact details

Regulatory Changes

No new regulatory changes introduced. This order enforces existing compliance requirements under SEBI (Investment Advisers) Regulation, 2013, specifically Regulation 13(b) regarding mandatory disclosure of changes in contact information and particulars.

Compliance Requirements

  • Investment Advisers must maintain current and accurate contact details with SEBI
  • IAs must forthwith inform SEBI in writing if any information or particulars previously submitted are found to be false or misleading
  • IAs must inform SEBI of any material change in information already submitted
  • IAs must cooperate with SEBI inspection teams and be available at registered addresses
  • IAs must respond to official communications from SEBI and stock exchanges

Important Dates

  • January 17, 2025: Inspection team visited Bilaspur, Chhattisgarh; Noticee not found
  • January 20, 2025: Email sent to registered email address; reminder email sent
  • January 27, 2025: Follow-up email sent to registered email address
  • Last week of January 2025: Multiple attempts to contact on registered mobile number
  • January 31, 2025: BSE requested to verify Noticee’s reachability
  • February 6, 2025: BSE confirmed Noticee not reachable
  • December 9, 2025: Order issued (Reference No. RD/WRO/DIV-3/31824/2025-26)

Impact Assessment

Market Impact: Low - This order affects a single Investment Adviser and does not have broader market implications.

Regulatory Impact: Medium - Reinforces SEBI’s strict enforcement of compliance requirements for registered intermediaries, particularly regarding maintaining current contact information and cooperating with inspections.

Industry Impact: This case serves as a reminder to all Investment Advisers about their ongoing obligations to:

  1. Maintain accurate and current registration details with SEBI
  2. Be available and cooperative during regulatory inspections
  3. Respond promptly to communications from SEBI and stock exchanges

Investor Protection: The action demonstrates SEBI’s commitment to ensuring that registered Investment Advisers remain accessible and accountable to both regulators and clients. Non-cooperative behavior and outdated contact information raise concerns about investor protection and the ability of clients to reach their advisers.

Impact Justification

High severity regulatory action against a specific Investment Adviser for non-compliance, but low market impact as it affects only one intermediary with limited client base