Description

SEBI order under Section 12(3) of SEBI Act, 1992 read with Regulation 30A of SEBI (Intermediaries) Regulations, 2008 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 (Prop. Trade View), a registered Investment Adviser (Registration No. INA000009074, PAN: AJWPJ4144R). The order stems from the Noticee’s failure to cooperate during an inspection conducted by SEBI and BSE in January 2025 under the theme “Advisory Fees collected by IAs from the Clients” and failure to update contact details as required under Regulation 13(b) of SEBI (Investment Advisers) Regulation, 2013.

Key Points

  • Krishna Kumar Jaiswal is a SEBI-registered Investment Adviser operating as Trade View (Registration No. INA000009074)
  • Inspection team from SEBI and BSE visited Bilaspur, Chhattisgarh in January 2025 but the Noticee was not found at the registered address
  • Registered mobile number (ending with 90xxxx2958) was either switched off or not reachable during multiple contact attempts
  • No response received to emails sent to registered email address krishna.jaiswal88@gmail.com on January 20 and January 27, 2025
  • BSE confirmed on February 06, 2025 that the Noticee was not reachable, despite having submitted Annual Compliance reporting for 2023-24 and periodic reporting for March 31, 2024 & September 30, 2024
  • The Noticee violated Regulation 13(b) of SEBI (Investment Advisers) Regulation, 2013 by failing to inform SEBI about changes in contact details
  • Residents at the registered address claimed to be relatives of the Noticee

Regulatory Changes

No regulatory changes introduced. This is an enforcement order against an individual Investment Adviser.

Compliance Requirements

  • All Investment Advisers must maintain updated contact details with SEBI
  • Investment Advisers must forthwith inform SEBI in writing if any information or particulars previously submitted are found to be false or misleading in any material particular
  • Investment Advisers must inform SEBI if there is any material change in the information already submitted
  • Investment Advisers must cooperate with SEBI and designated stock exchange inspections
  • Investment Advisers must be available at their registered address for regulatory inspections

Important Dates

  • January 17, 2025: Inspection team visited Bilaspur, Chhattisgarh; Noticee not found at registered address
  • January 20, 2025: Email sent to Noticee’s registered email address; no response received
  • January 27, 2025: Reminder email sent; no response received
  • Last week of January 2025: Multiple attempts to contact Noticee on registered mobile number
  • January 31, 2025: BSE requested to verify if Noticee was reachable
  • February 06, 2025: BSE confirmed Noticee was not reachable
  • Financial Year 2024-25: Inspection theme “Advisory Fees collected by IAs from the Clients” selected

Impact Assessment

Market Impact: Low - This is an individual enforcement action against a single Investment Adviser and does not affect broader market operations or other market participants.

Operational Impact: High for the Noticee - The order is issued under Section 12(3) of SEBI Act, 1992 read with Regulation 30A of SEBI (Intermediaries) Regulations, 2008, which may result in suspension or cancellation of the Investment Adviser’s registration.

Regulatory Significance: This order reinforces SEBI’s expectation that all registered intermediaries, including Investment Advisers, must:

  1. Maintain accurate and updated contact information with SEBI
  2. Be available for regulatory inspections at their registered address
  3. Cooperate with SEBI and designated stock exchange officials during inspections
  4. Respond to regulatory communications in a timely manner

The case highlights SEBI’s proactive approach to conducting thematic inspections of Investment Advisers and its intolerance for non-cooperation during regulatory supervision activities.

Impact Justification

Individual enforcement action against a specific Investment Adviser for non-cooperation during inspection. High severity for the individual but low market impact as it affects only one registered IA.