Securities and Exchange Board of India (“SEBI) received a complaint on May 20, 2020, from Mr. Nitesh Jain, Proprietor of M/s ProfitAim Research, a SEBI registered Investment Advisor, against an entity named M/s. Profitsaim (hereinafter referred to as “Profitsaim”), alleging that Profitsaim is an unregistered entity which is defrauding people and misusing the name of his firm. Thereafter, the matter was taken up for preliminary examination.
BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA CORAM:MADHABI PURI BUCH, WHOLE TIME MEMBER
Under Section 11,11(4),11B (1) and 11D of the Securities and Exchange Board of India Act, 1992
In Re: Viplation of Provisions of Secutities and Exchange board of India (Investment Advisers)Regulations,2013
In Respect of
Name of the entity : PAN
Profitsaim (Prop: Mr. Syed Ayaz) : FHCPS5667F
1. Securities and Exchange Board of India (“SEBI) received a complaint on May 20, 2020, from Mr. Nitesh Jain, Proprietor of M/s ProfitAim Research, a SEBI registered Investment Advisor, against an entity named M/s. Profitsaim (hereinafter referred to as “Profitsaim”), alleging that Profitsaim is an unregistered entity which is defrauding people and misusing the name of his firm. Thereafter, the matter was taken up for preliminary examination.
SEBI ’s Examination
2. SEBI carried out a preliminary examination to ascertain whether unregistered investment advisory activities were being carried out by Profitsaim. It was observed that Profitsaim is using the payment gateway Razorpay to collect payments from its customers. Razorpay provided the account opening form, KYC & account details of M/s. Profitsaim, from which it was observed that the bank account linked to Profitsaim was maintained with DBS Bank. The bank was advised to provide the bank statement for the period beginning from the date of account opening to till date/date of closure and copy of AOF/ KYC documents submitted at the time of account opening. From the reply received from Razorpay and DBS Bank, the following details are obtained:
Business name: PROFITSAIM
Business Website: http://profitsaim.com
Business Category: Financial Services
Business Subcategory: Financial and Investment Ac
Registered Address: 638, 7th main, 9th Cross, Cavery Nagar, BSK 2nd stage, Bengaluru, Karnataka
Name on the PAN Card: Syed Ayaz (FHCPS5667F)
Email ID: email@example.com
Phone No.: 96067 77878
Beneficiary Name: Syed Ayaz
Bank Account No.: 881033238562
IFSC Code: DBSS0IN0811
3. Letters dated June 01, 2020, were sent to the above mentioned address of M/s. Profitsaim and its Proprietor Mr. Syed Ayaz, seeking details of the activities carried out in the name of M/s. Profitsaim and the same were delivered on June 06, 2020. The copies of said letters were also sent to entity’s email address firstname.lastname@example.org. As no reply was received, reminder letters were also sent on June 17, 2020, which were returned undelivered. A site visit was made to the said address on July 28, 2020, during which it was found that no such entity/ person stays at the said address.
4. The website www.profitsaim.com was perused. At the time of the preliminary examination, the website was active and the print out of the web pages of the firm’s website were taken and placed on record. The mobile number listed on the website is 9886412311. SEBI-Bengaluru Local Office made an incognito call to the said number, which was answered by a certain Mr. Ram who stated that they are engaged in providing advisory services related to stock market. At the time of passing of this Order, it is observed that the website www.profitsaim.com is no longer accessible; however, the payment gateway link (https://pages.razorpay.com/pl_Ef45j1mesX23Z0/view) appears to be still operative.
5. As per the intermediary database on SEBI website, it is observed that M/s. Profitsaim or its proprietor Mr. Syed Ayaz is not registered with SEBI in any capacity. SEBI’s examination found that M/s. Profitsaim and its proprietor Mr. Syed Ayaz held itself out and acted as an Investment Advisor for providing tips and trading calls in the commodities market without obtaining a registration under SEBI (Investment Advisers) Regulations, 2013 (hereinafter referred to as “IA Regulations”).
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