August 08, 2008
PR No. 145/2008
SEBI launches criminal prosecution against Sh. Rajeev Kapoor
SEBI has filed another criminal complaint on 11.07.2008 against Sh. Rajeev Kapoor, proprietor of M/s Imax Equity Research, 501-502, Ansal Pragati Deep Tower, District Centre, Laxmi Nagar, Delhi for violation of Section 12 (1) of the SEBI Act, 1992 read with Regulation 3 of the SEBI (Portfolio Managers) Regulations, 1993,and Regulation 3 (c) and (d) of the SEBI (Prevention of Fraudulent and Unfair Trade Practices) Regulations, 2003 punishable under Section 24 (1) of the SEBI Act, 1992 in the court of Additional Chief Metropolitan Magistrate, Tis Hazari, Delhi. The punishment prescribed for these offences is an imprisonment for a term which may extend to 10 years or with fine which may extend to Rs. 25 Crore or with both.
Investigations have revealed that Sh. Rajeev Kapoor is a habitual offender and has been operating in the securities market in complete violation of statutory provisions. Despite restraint orders, penalties and prosecutions launched by SEBI against him, he has not refrained from luring the public, committing fraud and operating as an unregistered portfolio manager.
His modus operandi includes soliciting investments from public through grossly misleading advertisements, mass messaging, emails and telephone calls. Advertisements issued by him contain deceptive claims like �Loss 100% borne by us��, �Get 4% monthly fixed return..�. Such advertisements including the recent one in The Economic Times, Delhi edition on July 04, 2008 which is enclosed. He works through proprietary firms and keeps changing the names of the firms and also his location(s).
The activities of Shri Rajeev Kapoor have been found to be in violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market), Regulations, 2003 and SEBI (Portfolio Managers) Regulations, 1993 leading to the aforesaid prosecution. Besides, SEBI has taken the following actions against Sh. Kapoor in the past as detailed below:
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During 2003, Sh. Rajeev Kapoor was carrying on the similar operations from Kolkatta through a proprietary firm viz. M/s Delta Alliance Financial Services Investments. The said firm was debarred by SEBI vide order dated Jan. 02, 2004 and Shri Rajeev Kapoor was directed to cease and desist from acting as an unregistered portfolio manager, from accepting deposits and also from publishing any advertisement luring the investors to invest in the securities market.
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Investigations indicate that after passing of the said order, Sh. Kapoor shifted his operations in the name of another firm viz. M/s Delta Alliance Investments at Kolkatta. SEBI passed another order on August 16, 2004 debarring this firm (whose proprietor was shown as one Ms. Santa Chakrabarty) from securities market.
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Despite the said orders, Shri Rajeev Kapoor continued to carry out similar operations; prosecution proceedings were launched against him by SEBI in the court of Chief Metropolitan Magistrate, Kolkatta for violating provisions of the SEBI Act and SEBI (Portfolio Managers) Regulations, 1993.
SEBI had also initiated adjudication proceedings against Shri Rajeev Kapoor. The adjudication officer imposed a penalty of Rs 50,000/- vide order dated November 03, 2004, which he failed to pay leading to filing of another prosecution case against him in the court of Additional Chief Metropolitan Magistrate, Mumbai on January 16, 2006.
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Besides, there are numerous police cases pending against him by different State Police departments Shri Kapoor has been in judicial/ police custody on several occasions in the past.
The members of the public are hereby cautioned and advised not to deal with Shri Rajeev Kapoor and M/s. Imax Equity Research and any of his firms, as his activities are unauthorized and in violation of SEBI Act 1992 and other relevant regulations.
Mumbai
August 08, 2008
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