Description

SEBI order under Section 12(3) of SEBI Act, 1992 against Investment Adviser Krishna Kumar Jaiswal for non-availability during inspection and failure to maintain updated 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 action stems from the Investment Adviser’s non-availability during a scheduled inspection and failure to maintain updated contact details as required under SEBI (Investment Advisers) Regulation, 2013.

Key Points

  • Investment Adviser Krishna Kumar Jaiswal was selected for inspection under the theme “Advisory Fees collected by IAs from the Clients” during FY 2024-25
  • SEBI and BSE inspection team visited Bilaspur, Chhattisgarh on January 17, 2025 but the Noticee was not found at the registered address
  • Multiple attempts to contact the Noticee on registered mobile number (90xxxx2958) were unsuccessful - phone was switched off or not reachable
  • Emails sent to registered email address (krishna.jaiswal88@gmail.com) on January 20 and January 27, 2025 received no response
  • BSE confirmed via email dated February 06, 2025 that the Noticee was unreachable, though annual compliance reporting for 2023-24 and periodic reporting for March 31, 2024 & September 30, 2024 were submitted
  • Residents at the registered address claimed to be relatives of the Noticee

Regulatory Changes

This order reinforces existing regulatory requirements under SEBI (Investment Advisers) Regulation, 2013, specifically:

  • Regulation 13(b): Investment advisers must forthwith inform SEBI in writing if any information or particulars previously submitted are found to be false or misleading, or if there is any material change in information already submitted
  • The order emphasizes the ongoing obligation of registered intermediaries to maintain accurate and updated contact details with SEBI

Compliance Requirements

  • All registered Investment Advisers must ensure their contact details (address, mobile number, email) registered with SEBI are current and accurate
  • Investment Advisers must be available for regulatory inspections at their registered address
  • Any changes in contact information must be promptly communicated to SEBI in writing
  • Investment Advisers must respond to regulatory communications and inspection notices
  • Failure to maintain updated information or cooperate with inspections may result in enforcement action under Section 12(3) of SEBI Act, 1992

Important Dates

  • January 17, 2025: SEBI and BSE inspection team visited Bilaspur, Chhattisgarh; Noticee not found at registered address
  • January 20, 2025: Reminder email sent to Noticee; no response received
  • January 27, 2025: Follow-up email sent; no response received
  • January 31, 2025: BSE requested to verify if Noticee was reachable
  • February 06, 2025: BSE confirmed Noticee was unreachable
  • December 09, 2025: Order issued by SEBI (Order No. RD/WRO/DIV-3/31824/2025-26)

Impact Assessment

Market Impact: Minimal to none. This action affects a single small Investment Adviser and has no direct impact on market operations or listed securities.

Regulatory Impact: This order serves as a precedent and warning to all registered Investment Advisers about the importance of maintaining updated contact information and cooperating with regulatory inspections. It demonstrates SEBI’s commitment to enforcing compliance among intermediaries.

Industry Impact: Investment Advisers and other SEBI-registered intermediaries should review and update their registered contact details to ensure compliance and avoid similar enforcement actions.

Investor Protection: The action protects investors by ensuring that registered Investment Advisers remain accountable and accessible to regulators for supervision and inspection purposes.

Impact Justification

High severity regulatory action against a registered investment adviser but low market impact as it affects only one small intermediary. Medium importance for regulatory compliance awareness.