Sebi bars Minance Technologies, 3 others for unregistered portfolio management activities

By: |
December 8, 2020 9:18 PM

In an interim order passed against MTPL and the individuals, Sebi asked MTPL to withdraw all advertisements in relation to its PMS (Portfolio Management Services) activity

SEBIThe board approved the amendments to the norms governing intermediaries to avoid the duplicity of proceedings before the designated authority and member.

Markets regulator Sebi has barred Minance Technologies Pvt Ltd (MTPL) and three individuals from the securities market for carrying out unregistered portfolio management activities. They have also been directed to cease and desist from acting as portfolio managers until further orders. Soham Soumya Sarkar, Adhiraj Singh and Anurag Bhatia are the three individuals who have been barred.

In an interim order passed against MTPL and the individuals, Sebi asked MTPL to withdraw all advertisements in relation to its PMS (Portfolio Management Services) activity or any other unregistered activity in the securities market until further orders. MTPL and the individuals may file their reply within 21 days from the date of the order, as per the order passed on Monday.

Following several complaints, Sebi had carried out an examination and found that MTPL and the individuals were engaged in portfolio management services without obtaining registration from it. Besides, they had collected an amount of Rs 64.70 crore from investors through such services.

Besides, Sarkar, Singh and Bhatia were the directors of MTPL during the period when it was prima facie found to be involved in unregistered portfolio management services, the order said. The regulator noted that as recently as October 31, 2020, money was credited to the bank accounts of MTPL, which prima facie indicates that MTPL is still carrying on its unregistered portfolio management services.

Noting that urgent necessary action has to be taken against MTPL, Sebi restrained the entities from the securities market and also directed them not to divert any funds raised from investors until further orders. They have also been asked not to dispose of or alienate any assets, whether movable or immovable, or any interest or investment or charge on any of such assets held in their name, except with the prior permission of Sebi.

In a separate order passed on Monday, the regulator barred Eprofitzone Fincap Consultant Pvt Ltd and two individuals — Ajit Kumar and Prakash Kumar — from securities market for carrying out unauthorised investment advisory activities. They have been directed to cease and desist from acting as investment advisors until further orders.

Sebi noted that Eprofitzone and the two individuals were involved in investment advisory services without obtaining a certificate of registration from it. The individuals were directors of Eprofitzone during the period it was prima facie found to be involved in providing unregistered investment advisory services, as per the order.

The watchdog also directed them to not divert any funds raised from investors until further orders. In another order passed on Monday, the regulator barred Gold Crude Research and its proprietor Ramnarayan Sharma from the securities market for carrying out unregistered investment advisory activities.

They have also been asked to cease and desist from acting as investment advisors until further orders.

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