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Journalism of Courage
The Securities and Exchange Board of India (Sebi) is contemplating action against the firm Ashwani Gujral Investment and Portfolio Management Pvt Ltd (AGIPM) run by well-known technical analyst Ashwani Gujral,often found on business television channels giving market opinions. It is alleged AGIPM has been offering portfolio management services (PMS) without obtaining prior Sebi approval.
As per preliminary findings of Sebi,AGIPM was offering various investment schemes such as ‘Managed Future Service’,’Managed Nifty Options Service’ among others,which,according to Sebi,were in nature of PMS.
Sources also added that the regulator is also looking at whether the firm had violated Sebi (Stock Brokers and Sub Brokers) Regulations. The company had solicited funds from investors by stating on its website,We have a franchisee of a reputed brokerage house. Sebi norms state that only a sub-broker registered with the regulator can act on behalf of a stock broker as an agent for assisting the investors in buying,selling or dealing in securities through such stock brokers. Depending on the findings,sources said that the regulator can either restrain AGIPM and its promoters from accessing the securities market till further directions or initiate adjudication proceedings against the firm. When contacted,Sebi officials declined to comment while an email sent to Gujral for his comment on the alleged violation remained unanswered.
According to a person with the direct knowledge of the development,AGIPM came under the regulatory scanner following complaints from few of its investors who had allegedly incurred heavy losses after investing in the above mentioned scheme. And an initial probe found that the firm had actively managed or administered funds of its clients for investment in the securities market. And as per Sebi norms such advice or management of funds requires prior registration with Sebi as portfolio manager.
The scheme offered by AGIPM was meant for those who do not have time to trade but want to participate in the equity and derivative market.
