Markets

BMA Wealth moved money through 13 companies, investors tell SEBI, police

PALAK SHAH Mumbai | Updated on December 13, 2019 Published on December 13, 2019

Rising displeasure: Demanding speedy action, clients of BMA Wealth staged a protest in front of the SEBI office in Mumbai   -  Shashi Ashiwal

Suspended stock broker BMA Wealth has diverted client money worth several crores for buying personal real estate and was running 13 companies, which were used to move money, investor complaints with SEBI reveal.

Investors told BusinessLine that they had gathered information on various companies of BMA Wealth’s promoter from government offices such as the Registrar of Companies. Complainants also said they came to know that BMA Wealth’s promoter had a multi-crore residence in Mumbai’s Bandra Kurla complex.

They said that BMA was involved in pledging client shares worth crores, which have now been sold, a copy of the complaint letter with BusinessLine show.

BusinessLine is also in possession of a police complaint filed by clients of BMA Wealth in Kolkata.

Clients of BMA Wealth have also sent the copy of their complaints to the Finance Ministry and PMO.

Allegation

“Anubhav Bhatter, Director, BMA Wealth, used client money to fund personal properties in Mumbai and even fund insurance business in the name of RDB and AB Insurance so that he could live happily from the annuity income,” the complainants have told SEBI and the police.

BMA Wealth was suspended in October by the NSE and SEBI following client default complaints. But investors are awaiting further action. Recently, many investors had gathered at the SEBI office to protest and demanded that the regulator take Karvy-like action against the broker.

Clients of BMA Wealth have provided SEBI and the police with a list of companies where BMA’s promoters diverted their money.

They said these companies had dummy directors but the monetary benefits flowed to BMA Wealth’s promoters.

Published on December 13, 2019
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