Description
SEBI suspends registration of Investment Adviser Winway Research (INA000007492) for multiple violations including operating without proper registration, accepting payments through third-party accounts, and charging duplicate fees.
Summary
SEBI has issued an order under Section 12(3) of the SEBI Act, 1992 against Winway Research (Proprietor: Mr. Ankur Jain), a registered Investment Adviser (Registration No. INA000007492). The order follows an enquiry report dated November 18, 2024, based on complaints received through the SCORES portal. The Noticee has been found in violation of multiple provisions of IA Regulations, PFUTP Regulations, and SEBI Circulars.
Key Points
- Investment Adviser Winway Research (INA000007492) found guilty of multiple regulatory violations
- Failed to apply for registration as a non-individual Investment Adviser despite operating as such
- Accepted client payments through relatives’ bank accounts and personal accounts of other persons
- Charged duplicate fees from clients for the same products during overlapping periods
- Issued invoices for payments not mentioned in client agreements
- Failed to enter into proper agreements with clients for various fees charged
- Action initiated based on complaints received on SEBI’s SCORES portal
- Enquiry Report submitted by Designated Authority on November 18, 2024
Regulatory Changes
No new regulatory changes introduced. This order enforces existing provisions under:
- SEBI (Investment Advisers) Regulations, 2013
- SEBI (Intermediaries) Regulations, 2008
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
- SEBI Circular SEBI/HO/IMD/DF1/CIR/P/2020/182 dated September 23, 2020
Compliance Requirements
For Winway Research:
- Must comply with SEBI order issued under Section 12(3) of SEBI Act
- Required to register as non-individual Investment Adviser per 2020 Circular requirements
- Must accept payments only through proper channels (not through third-party or relatives’ accounts)
- Must enter into written agreements with all clients clearly specifying fee structure
- Must issue invoices only for fees mentioned in client agreements
- Cannot charge duplicate fees for same products during overlapping periods
For Other Investment Advisers:
- Ensure proper registration category (individual vs. non-individual)
- Maintain compliant payment collection practices
- Execute proper client agreements for all fee arrangements
- Adhere to Code of Conduct specified in Third Schedule of IA Regulations
Important Dates
- November 18, 2024: Enquiry Report submitted by Designated Authority
- January 27, 2026: SEBI order issued (document reference: WTM/AS/WRO/WRO/31986/2025-26)
Impact Assessment
Market Impact: Limited direct market impact as this affects a single investment adviser rather than broader market operations.
Investor Protection Impact: Positive - enforcement action protects investors from fraudulent practices and improper fee charging by investment advisers.
Industry Impact: Serves as deterrent for other investment advisers engaging in similar violations. Reinforces importance of:
- Proper registration and categorization
- Transparent fee structures
- Compliant payment collection practices
- Written client agreements
Regulatory Impact: Demonstrates SEBI’s active monitoring of investment advisers through SCORES complaints and strengthens investor confidence in regulatory oversight.
Specific Violations:
- Operating without proper non-individual IA registration (violation of 2020 Circular and Clause 8 of Code of Conduct)
- Payment irregularities violating Regulations 3(d), 4(1), 4(2)(o) of PFUTP and Section 12A(c) of SEBI Act
- Fee charging violations under Regulation 15(1), (2), and (9) of IA Regulations
- Documentation violations under Regulation 19(1)(d) and Code of Conduct requirements
Impact Justification
Enforcement action against a registered investment adviser affects investor protection and industry compliance standards, but has limited direct market impact