Capital markets regulator Sebi has barred VPS Advisory Services and its proprietor Varun Pratap Singh from acting as portfolio manager for providing investment related advisory services to clients without obtaining requisite approval.
The regulator said VPS was acting as a portfolio manager without obtaining registration from Sebi and therefore violated PMS (Portfolio Management Services) regulations.
In an order passed today, Sebi said VPS Advisory Services and its proprietor Varun Pratap Singh "cease and desist from acting as portfolio manager and not to solicit or undertake such activity or any other activities in the securities market, directly or indirectly, in any manner whatsoever."
In an interim order, Sebi found that portfolio management services were offered by VPS since March 2012 and most of the clients were individuals.
"On the basis of the information furnished by VPS, it is apparent that PMS were offered to at least 9 clients," the order said.
The regulator added that an analysis of bank statements provided by various banks shows that "there are several deposits into the bank accounts from many clients which are equivalent to the fees charged by VPS for various advisory services offered by VPS."
VPS Advisory Services has been directed to "immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, website etc. In relation to their portfolio management activities in the securities market."
Sebi also directed it not to raise any funds from investors and not to divert any funds already raised from investors.
Sebi said these directions would take effect immediately and would be in force until further orders.
