Sebi asks VPS Advisory, proprietor to return clients' money

Regulator Sebi today directed VPS Advisory Services and its proprietor Varun Pratap Singh to return the money received from clients as fees for unregistered portfolio management activities.
Besides, they have been prohibited from the capital market "till the expiry of four years from the date of refund of the money".
The regulator found that VPS was acting as a portfolio manager without obtaining registration from Sebi and therefore violated PMS (Portfolio Management Services) regulations.
Singh has admittedly collected funds from at least nine clients for acting as unregistered portfolio manager. He collected Rs 84,995 as fees from clients.
"In order to safeguard the interest of the investors and their investments, and to further ensure orderly development of securities market it becomes necessary for Sebi to issue appropriate directions against VPS and Singh," Sebi Whole Time Member Madhabi Puri said in an order.

Accordingly, Sebi has asked Singh and VPS to "refund the money received from the clients in respect of the unregistered portfolio management activities, along with the promised returns" and submit a report from a chartered accountant within a period of three months.
Also, they have been restrained from associating with any listed firm and any firm which intends to raise money from the public "till the expiry of four years from the date of refund of the money".
Earlier in June 2015, the markets watchdog had barred VPS and Singh from acting as portfolio manager for providing investment related advisory services to clients without obtaining requisite approval.