Description
SEBI issues final order against Swati Purwar for illegal unregistered investment advisory activities through Prowise Capital partnership firm.
Summary
SEBI has issued a final order against Swati Purwar, a partner in Prowise Capital partnership firm, for conducting illegal unregistered investment advisory activities. The case involves violations of SEBI Act Section 12(1) and Investment Advisers Regulations. The Securities Appellate Tribunal had earlier set aside the previous final order due to service issues and remitted the matter back to SEBI for fresh consideration.
Key Points
- Swati Purwar was a partner in Prowise Capital, an unregistered partnership firm
- Original interim order and final order dated July 27, 2020 and June 14, 2021 respectively
- Securities Appellate Tribunal set aside previous final order on January 15, 2025 due to improper service
- Matter remitted back to SEBI for fresh consideration following due process
- Noticee’s representatives inspected documents on March 11, 2025 and filed reply on April 16, 2025
- Personal hearing conducted on April 29, 2025
Regulatory Changes
No new regulatory changes introduced. This order reinforces existing requirements under SEBI (Investment Advisers) Regulations, 2013 regarding mandatory registration for investment advisory activities.
Compliance Requirements
- Investment advisers must obtain registration under SEBI (Investment Advisers) Regulations, 2013
- Partnership firms and their partners are jointly liable for regulatory violations
- Entities conducting investment advisory activities without registration face enforcement actions
- Refund of fees collected from investors may be required for unregistered activities
Important Dates
- January 15, 2016: Prowise Capital partnership firm formed
- July 27, 2020: Original interim order issued
- June 14, 2021: Original final order issued
- January 15, 2025: SAT set aside final order and remitted matter to SEBI
- February 05, 2025: SAT directed personal hearing date
- March 11, 2025: Document inspection by noticee’s representatives
- April 16, 2025: Reply submitted by noticee
- April 29, 2025: Personal hearing conducted
Impact Assessment
This enforcement action serves as a reminder to investment advisers and partnership firms about the importance of proper registration and compliance with SEBI regulations. While the impact is limited to the specific entities involved, it reinforces SEBI’s commitment to taking action against unregistered investment advisory activities and protecting investor interests.
Impact Justification
Individual enforcement action with limited market-wide impact but important for investment advisory compliance