 "Sebi")
Markets regulator Sebi asked Secure Success Plan Pvt Ltd and its directors to "cease and desist" from acting as portfolio manager, while ordering them not to divert the funds raised from investors.
The Securities and Exchange Board of India (Sebi) found in its probe that Secure Success Plan is not registered with it in any capacity such as broker, sub-broker, investment advisor or portfolio manager. Further, the company is also offering monthly returns of 5-8 per cent to their investors.
The firm is soliciting money from investors and investing them in securities with promise to sharing the profits generated, the regulator found.
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"The characteristics and features of the business activity carried out by Secure Success Plan ...Prima facie leads to the conclusion that it is providing services of a portfolio manager. Thus, the activities of Secure Success Plan are prima facie in violation of ...The PMS Regulations," Sebi said in an interim order.
The regulator has directed Secure Success Plan and its directors, Shreyas Manjunath and Annapurna Mathkur Venkatachalaiah, "to cease and desist from acting as a portfolio manager and not to solicit or undertake such activity or any other unregistered activities in the securities market, directly or indirectly, in any matter whatsoever".
It has also directed them "not to divert any funds raised from the investors".
The order would come into effect immediately and will be in force until further orders.
The move comes after Sebi received a reference from Reserve Bank of India (RBI) in August 2015 regarding fund mobilisation by Secure Success Plan.
