Financial Daily from THE HINDU group of publications
Thursday, Sep 23, 2004
Financial Daily from THE HINDU group of publications Thursday, Sep 23, 2004 |
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Markets
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Regulatory Bodies & Rulings SEBI turns down Wealth Management PMS licence bid again Our Bureau
Kolkata , Sept. 22 SEBI has again turned down a bid by Wealth Management Advisory Services, a Kolkata-based outfit, to get a PMS licence. The regulator took a similar stand in June in view of the action taken against certain companies associated with it. SEBI, while considering the application, had found that SMIFS Securities, SMIFS Capital Markets and SMIFS Capital Services were its associates. Regulatory proceedings against two of these had been started earlier. The company, which had later urged the market watchdog to reconsider its decision and allow registration, underlined the fact that SAT had stayed the operation of an earlier order passed in the adjudication proceedings against SMIFS Capital Markets and SMIFS Capital Services in the matter pertaining to BSL Ltd. "The applicant has also stated that the adjudication proceedings and/or adjudication against any associate companies of the applicant cannot be a ground for invoking regulation 6(2) (k) of the SEBI (Portfolio Managers) Regulations, 1993," Mr T.M. Nagarajan, Member, has declared in his latest order, adding that the company could not establish any fresh material on record so as to reconsider the earlier decision. A mere pendency of appeal against an adjudication order would not mitigate the inhibiting factor, it has been pointed out. SEBI had gathered sufficient evidence to prove that the company was connected with certain entities against which it had already initiated action. Allowing such an outfit would put investors' interests at risk, it was felt. "As a capital market regulator, SEBI cannot ignore the connections the applicant company has with the persons who indulged in manipulations in the market," Mr Nagarajan has mentioned, adding that the applicant failed to confirm any new material facts. The earlier order, incidentally, had referred to an enquiry initiated against SMIFS Securities in the matter of DSQ Software for alleged violation of various legislations. It also stated that there had been a probe into SMIFS Securities regarding South East Asia Marine Engineering and Constructions Ltd. Further, there was an administrative warning issued against SMIFS Capital Markets regarding KHSL Industries. SMIFS Securities, SMIFS Capital Markets and SMIFS Capital Services were considered to be group/associate ventures.
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