IndiaNivesh to wind up PMS biz, hand over assets under custody to clients

Clients can opt to liquidate shares or transfer them to their demat accounts

IndiaNivesh has decided to shut down its portfolio management services (PMS) business, the company said in a communication to its clients.

“In view of the current market volatility pursuant to the global outbreak of Covid19 and its long-term impact on our business, we have decided to close our operation at IndiaNivesh Investment Managers, a Sebi-registered portfolio manager. Thus our sole strategy of Sprout Portfolio will be wound up,” the firm said.

IndiaNivesh has decided to hand over all assets under custody (AUC) to its clients. The investment managers has said clients will have to choose between liquidating their holdings or transferring the shares to their demat accounts.

IndiaNivesh Investment Managers has about 190 clients and AUC of about Rs 60 crore. Ahead of the market sell-off in February, the AUC stood at Rs 90 crore.

IndiaNivesh PMS operated a smallcap strategy. This universe has been particularly hit not just in the latest market fall but has been underperforming the market since 2018.

Sources said the PMS has aggressively raised cash levels in recent months, which had helped its clients limit the damage caused by the recent sell-off.

Sources add the the decision to discontinue operations was more of a business decision and has less to do with the market fall or the recent regulatory tightening.