RCAM settles PMS case with Sebi

Reliance Capital Asset Management Company (RCAM) has paid Rs 19.5 lakh to settle a probe by markets regulator Sebi into alleged defaults found during an inspection of the company's portfolio management services (PMS).
The inspection was carried out on March 21-22, 2013, to look into the PMS services offered by RCAM, during which certain alleged irregularities were found about inadequate disclosure of information relating to the management of related party accounts and some other violations.
It had also been alleged that RCAM held securities of certain clients in their own account. Besides, portfolio manager had incomplete KYC (Know Your Client) details for some corporate entities. The company had allegedly not furnished physical copies of the reports containing prescribed details to clients on a half-yearly basis.

RCAM had allegedly not handled complaints from their clients in a proper and timely manner.
Pursuant to this, RCAM had filed a voluntary settlement application in August 2013 seeking settlement of any action anticipated with regard to the alleged defaults.
RCAM is part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital and is also into mutual fund business.

As part of the settlement process, the company submitted that it has taken all the remedial actions.
The payment of Rs 19.5 lakh has been made towards 'monetary settlement charges', Sebi said in its settlement order disposing of the proceedings in the case.

However, the order is "without prejudice to the right of Sebi to take enforcement actions including commencing or reopening of the proceedings" against the company, if any representation made by RCAM in the settlement proceedings are subsequently found to be untrue, or the company is found to have breached any of the clauses or conditions of undertakings and waivers filed during the current settlement proceedings.