Sebi bans individual from securities markets for unregistered PMS business
New Delhi, Jan 31, 2024
Markets regulator Sebi has restrained an individual from the securities markets for a period of two years for providing unregistered portfolio management services.
The regulator also directed Sanbun Investments, its proprietor Nishaan Singh (Noticee) to cease and desist from acting as or holding himself out to be a portfolio manager.
Sebi directed the noticee to refund Rs 16.19 crore received from clients and/or investors as fees or consideration or, in respect of their unregistered portfolio management activities within a period of three months, Sebi said in its order on Tuesday.
The order came after Sebi received a complaint in October 2022 against Sanbun Investments, which is the sole proprietorship concern of Nishaan Singh.
Pursuant to the receipt of the complaint, the regulator conducted an investigation to ascertain the veracity of the complaint and whether there had been any violation of PMS (Portfolio Managers) regulations.
"I note that under the garb of providing courses related to the securities market, the noticee has been offering portfolio management services and providing recommendations to the clients in private groups and luring investors/ clients to invest in the securities market by assuring positive returns," said Anitha Anoop, Chief General Manager of Sebi's Quasi-Judicial Cell 1.
The regulator also noted that the noticee has been offering portfolio management services without obtaining the relevant registration from Sebi in violation of PMS (Portfolio Manager) rules.
"I note that the noticee has received a total credit for a sum of Rs 16.19 crore in his two bank accounts towards the portfolio management services offered by him, and are liable to be refunded to the respective clients," Anoop said.
By indulging in such activities, the noticee contravened the regulatory norms.
Accordingly, Nishaan Singh is debarred from accessing as well as dealing in the securities market for two years or till the expiry of two years from the date of completion of refunds to complainants/ investors, whichever is later.
[Press Trust of India]
