Market regulator Sebi today barred one Vijay Kumar Gaba from acting as portfolio manager for providing investment related advisory services to clients without obtaining requisite approval.
The regulator found that Gaba was acting as a portfolio manager without obtaining registration from Sebi and therefore violated PMS (Portfolio Management Services) regulation.
In an interim order, the Securities and Exchange Board of India (Sebi) found that Gaba used to charge fees on monthly basis for providing market and investment related services to a few of his clients in Delhi.
"VKG (Vijay Kumar Gaba) was providing securities market and investment related advisory services to his clients which tantamount to the services offered by a "portfolio manager"," said the order, adding "this is being done by VKG without obtaining the registration from Sebi".
Sebi has directed Gaba "to cease and desist from acting as investment adviser and cease to solicit or undertake such activities or any other registered activities in the securities market, directly or indirectly in any manner whatsoever".
Besides, Sebi has asked it "not to divert any funds raised from any of its existing clients/investors".
