The Hindu Business Line : SEBI turns down PMS bid of Wealth Management Advisory

The Securities and Exchange Board (SEBI) has rejected a bid by the Kolkata-based Wealth Management Advisory Services Ltd to register as a portfolio manager, in view of the action takenagainst certain companies connected with it.

Allowing it to act as portfolio manager may be detrimental to investors' interest, the regulator has stated.

Activities of portfolio managers are governed by SEBI (portfolio managers) Regulations 1993.

The regulator, while processing the application, found SMIFS Securities Ltd, SMIFS Capital Markets Ltd and SMIFS Capital Services Ltd to be its associates. Regulatory proceedings against the first two outfits had been initiated earlier.

"An enquiry initiated (under SEBI order dated November 8, 2002) against SMIFS Securities Ltd in the matter of DSQ Software Ltd for the alleged violation of Securities and Exchange Board of India Act, 1992, SEBI (Stock Brokers and Sub-Broker) Rules and Regulations, 1992 and SEBI (prohibition of fraudulent and unfair trade practices relating to securities markets) Regulations, 1995, is in progress," stated the order passed recently by Mr T.M. Nagarajan, whole-time member, SEBI.

It also added that there had been a probe into SMIFS Securities regarding South East Asia Marine Engineering and Constructions Ltd for alleged violation of norms.

Besides, there was an administrative warning issued against SMIFS Capital Markets in KHSL Industries issue.

SMIFS Securities, SMIFS Capital Markets and SMIFS Capital Services are group/associate ventures, the regulator has said. Certain enquiries are in progress against one of the entities - SMIFS Securities.

Also, monetary penalty has been imposed on the two associates - SMIFS Capital Markets and SMIFS Capital Services.

The order found allegations against SMIFS Securities to be "serious" in nature.

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