Sebi order vs Credent Capital stands

Credent Capital and its director had appealed against the Sebi order.

“For violation on the part of appellants (Credent Capital Services and Kumar),the Board (Sebi) has only issued a direction which is remedial and not punitive. Therefore,we are not inclined to interfere in the matter,” the SAT said.

Pursuant to a complaint,Sebi said it had found that the website of Credent Capital Services was offering discretionary portfolio management services and claimed to have a team of experts “who carefully take investment decisions based on the clients’ objectives.”

The regulator alleged the company had carried out portfolio management services without having registered with Sebi.

Consequently,Sebi said it had issued interim directions barring the entities from dealing in the securities market and not to act as portfolio managers,among others.

Later,Sebi said it revoked the order as the entities had complied with the market regulator’s directives.

“…the complaints against the company have been resolved to the satisfaction of the complainants,” Sebi had said while lifting the ban.

But,the regulator with a view to protect the interests of the investors said it had issued directions to the company and its directors asking not to undertake any portfolio management services activity.

Further,it had asked the entities to immediately withdraw and remove advertisements,representations among others in relation to the portfolio management activities.

Also,the entities had to remove the words “Portfolio Management” from its name as undertaken by it “.