Sebi issues cease and desist orders against Asian Corporate

Sebi today asked Asian Corporate Consultancy and its proprietor to "cease and desist" from acting as investment advisor and portfolio manager, while ordering them not to divert the funds raised from investors.
Securities and Exchange Board of India (Sebi) found in its probe that Asian Corporate and its proprietor Dilip Anantrai Desai were engaged in providing investment advisory services to the investors on payment of fees, without getting due registration from the capital market regulator.
"...It is noted that Asian Corporate and its proprietor, Desai, are not registered with Sebi in any capacity such as broker, sub-broker, investment advisor or portfolio manager," Sebi said in the order today.

"The characteristics and features of the business activity carried out by Desai... Prima facie leads to the conclusion that Desai is providing services of investment adviser as well as portfolio manager," it added.
The regulator has directed Asian Corporate and Desai "to cease and desist from acting as an investment advisor and portfolio manager and not to solicit or undertake such activity or any other activities in the securities market, directly or indirectly, in any matter whatsoever".
It has also directed them "not to divert any funds raised from the investors".

The order has come into force with immediate effect.

As per Sebi orders, Asian Corporate collected Rs 6.75 lakh from six investors.
"It is evident that the activities of Asian Corporate... clearly indicate that they are engaged in providing investment advisory services to the investors on payment of fees," Sebi said.
The market regulator had received a complaint dated July 28, 2014 from a client of Asian Corporate, wherein it was alleged that Asian Corporate had incurred losses on the account and failed to return the money to the complainant as per the agreement.