Description

SEBI passes directions against Cash Cow Broking & Advisory Solutions and its partners for conducting investment advisory services without registration, ordering refund of fees collected from investors.

Summary

SEBI has passed an order under Sections 11, 11(4), and 11B of the SEBI Act, 1992 against M/s. Cash Cow Broking & Advisory Solutions (a partnership firm) and its three partners — Mr. Shailendra Sen, Mr. Amit Jain, and Mr. Chirag Sharma — for carrying out investment advisory activities without obtaining the mandatory registration from SEBI under the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.

Key Points

  • Cash Cow Broking & Advisory Solutions is a partnership firm with three partners: Shailendra Sen, Amit Jain, and Chirag Sharma.
  • SEBI received investor complaints alleging unregistered investment advisory services being provided by Cash Cow.
  • A Show Cause Notice was issued on March 12, 2020 for violating Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations.
  • A prior SEBI order dated January 18, 2022 had already directed the Noticees to refund ₹65,51,563 collected as fees from clients.
  • The Noticees appealed to the Securities Appellate Tribunal (SAT), which issued an interim order on May 31, 2022 directing a deposit of ₹30,00,000 with SEBI — a direction the Noticees failed to comply with.
  • SAT dismissed the Noticees’ appeal on April 27, 2023, confirming their involvement in unregistered investment advisory activities.
  • The current order under WTM/AS/WRO/WRO/32206/2025-26 follows the SAT’s dismissal and enforces final directions against the Noticees.

Regulatory Changes

No new regulatory changes are introduced. This order enforces existing requirements under:

  • Section 12(1) of the SEBI Act, 1992 — mandatory registration for investment advisers.
  • Regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013 — prohibition on providing investment advisory services without SEBI registration.

Compliance Requirements

  • The Noticees are directed to refund fees/consideration of ₹65,51,563 collected from investors for unregistered investment advisory services.
  • Directions include potential debarment from the securities market and prohibition from associating with listed entities and SEBI-registered intermediaries.
  • Compliance with any non-association and refund directives as specified in the final order.

Important Dates

  • March 12, 2020: Show Cause Notice issued to Noticees.
  • January 18, 2022: Original SEBI order directing refund of ₹65,51,563.
  • May 31, 2022: SAT interim order directing deposit of ₹30,00,000 with SEBI (not complied with).
  • April 27, 2023: SAT dismissed the Noticees’ appeal.
  • March 13, 2026: Present enforcement order issued (WTM/AS/WRO/WRO/32206/2025-26).

Impact Assessment

This order has a limited but meaningful impact confined to the named entities and affected investors. The enforcement action confirms SEBI’s continued scrutiny of unregistered investment advisory operations and signals its willingness to pursue multi-year proceedings through SAT to enforce compliance. Investors who paid fees to Cash Cow may be eligible for refunds totalling ₹65,51,563. The case reinforces regulatory expectations that all entities providing investment advice must hold valid SEBI registration under the IA Regulations before soliciting or serving clients.

Impact Justification

Enforcement action against an unregistered investment adviser with confirmed SAT dismissal of appeal; primarily affects the named entities and their clients rather than broad market participants.