SEBI initiates criminal proceedings against Rajeev Kapoor

Mumbai, Aug 8 (UNI) Capital market regulator Securities and Exchanges Board of India (SEBI) has initiated criminal proceedings against an habitual securities offender Rajeev kapoor, owner of M/s Imax Equity Research of Delhi for violating the regulations of SEBI.

SEBI in a release here said that punishment prescribed under the offences committed by Mr kapoor could involve imprisonment upto ten years or fine, which might extend to Rs 25 crore, or both.

SEBI said investigations have revealed that Mr Kapoor was a habitual offender and had been operating in the securities market in complete violation of statutory provisions. Despite restraint orders, penalties and prosecutions launched by SEBI against him, he had not refrained from luring the public, committing fraud and operating as an unregistered portfolio manager.

His modus operandi included soliciting investments from public, through grossly misleading advertisements, mass messaging, emails and telephone calls. Advertisements issued by him contained deceptive claims like ''Loss 100 per cent borne by us'', ''Get four per cent monthly fixed return''. Such an advertisement also came up in the Delhi edition of The Economic Times on July 4. He worked through proprietary firms and keeps changing the names of the firms and also his location(s).

The activities of Mr 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 this, SEBI had taken actions against him in 2003 for carrying out similar operations from Kolkata through another firm called M/s Delta Alliance Financial Services Investments.

Investigations indicated that after passing of the said order, he shifted his operations in the name of another firm viz. M/s Delta Alliance Investments at Kolkata. SEBI passed another order on August 16, 2004 debarring this firm (whose proprietor was shown as one Ms Santa Chakrabarty) from securities market.

Despite these orders, Mr Kapoor continued to carry out similar operations; prosecution proceedings were launched against him by SEBI in the court of Chief Metropolitan Magistrate, Kolkata for violating provisions of the SEBI Act and SEBI (Portfolio Managers) Regulations, 1993.

SEBI had also initiated adjudication proceedings against Mr 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.

Besides, there are numerous police cases pending against him by different State Police departments SEBI said and cautioned members of the public against having anyd eals with him or any of his firms.

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