Sebi warns investors about fake portfolio managers offering assured returns

Even registered portfolio managers cannot offer products with fixed returns, and are not allowed to accept funds or securities worth less than Rs 50 lakh from a client

The Securities and Exchange Board of India (Sebi) has cautioned investors to not fall prey to unauthorised money collection being done by entities claiming to be providing portfolio management services.

The market regulator has noticed cases in which entities are mobilising money from investors in small amounts while assuring them high returns. Even registered portfolio managers are not permitted by Sebi to offer products with assured or fixed returns on investment. Moreover, a portfolio manager is not allowed to accept funds or securities worth less than Rs 50 lakh from a client.

“Some of the entities have names similar to that of