Sebi bars Unique Consulting; promoters from capital markets

Sebi today barred Unique Consulting & Trading, its promoters and directors from the capital market for allegedly carrying out unauthorised portfolio management services as well as for collecting funds from general public on the promise of high returns.
According to the market regulator, Unique Consulting and its promoters/directors was acting as portfolio manager "without holding a valid certificate of registrations from Sebi but were also collecting deposits from the clients of Unique Consulting and other general investors in a fraudulent manner by misrepresentation".
Further, Sebi said that the entity, a stock broker with Madras Stock Exchange (MSE), issued advertisements claiming to offer services like "online trading, IPOs, mutual funds, insurance, fixed deposits, depository services, investment banking and wealth management" in addition to stock broking.

In an order today, Sebi has restrained "Unique Consulting and its promoters/directors from accessing the securities market" and further prohibited them from "dealing in securities, directly or indirectly, or being associated with the securities market in any manner".
Besides, the Securities and Exchange Board of India (Sebi) has prohibited the entities from mobilising funds from its clients or other general investors or offering any portfolio management activities, in whatever form.
It has also directed them "to cease and desist" from undertaking the portfolio management activities or any unregistered activity in the capital market.

Further, the entity and its promoters/directors have been asked to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, among others related to the portfolio management activities or any unregistered activity in the securities market.

Sebi had initiated a probe into a matter after several complaints alleged that Unique Consulting was a collecting deposits from them on the promise of assured returns.
The watchdog observed that funds amounting to more than Rs 53 lakhs was collected by Unique Consulting from its clients and other general investors and that deposit certificates were found to be issued to about 21 such investors by the entity under different schemes.
"The actual amount collected by Unique Consulting by way of deposits from its clients and other general investors under various schemes could be much higher than Rs 53.25 lakhs since deposit was collected from various investors including those who were not the registered clients of Unique Consulting," the order noted.

The promoters/directors against whom the order has been passed are -- P Shanmuga Ganesan (Promoter and Managing Director), K Mathan Kumar, U Indira and Janet Jenetha.