SEBI Bars Nishaan Singh of Sanbun Investments for Running Unregistered PMS, Asks To Refund Rs16.19 Crore to Clients
Moneylife Digital Team 31 January 2024
While imposing a ban for two years, market regulator Securities and Exchange Board of India (SEBI) asked Nishaan Singh, proprietor of Sanbun Investments (noticee), to refund Rs16.19 crore collected from clients of his unregistered portfolio management services (PMS). 
 
In an order, Dr Anitha Anoop, chief general manager (CGM) of SEBI, says, "...it is observed that Nishaan Singh was inducing clients or investors by offering 'swing recommendations', online courses, FTTP programme, hedge fund and live trading and promising positive returns. Further, in the garb of providing 'courses', he was advising clients personally for live market transactions. In view of the above, I note that under the garb of providing courses related to the securities market, Mr Singh has been offering PMS and providing recommendations to the clients in private groups and luring investors or clients to invest in the securities market by assuring positive returns."
 
SEBI received complaint from one Kaif Khan against Sanbun Investments, a sole proprietorship concern of Nishaan Singh. Mr Khan says Nishaan Singh falsely and fraudulently represented himself as registered with SEBI and National Stock Exchange of India Ltd (NSE) and duped him of Rs1.21 crore. 
 
After an investigation, SEBI found that Mr Singh was holding himself out as a portfolio manager, and carrying out the business as portfolio manager without obtaining the requisite registration from SEBI.
 
SEBI then issued a show-cause notice (SCN) to Mr Singh. After hearing his response to the SCN, and perusing the website of Sunbun Investments and bank records, the market regulator noted that under the garb of providing courses related to securities market, Mr Singh has been giving PMS, giving recommendations to the clients in private groups and luring investors and clients to invest in securities market by assuring positive returns.
 
"Furthermore, Mr Singh has not produced any evidence such as invoices issued to students to show that these payments were indeed received for educational courses. Upon perusal of the credit entries shown as 'receipt of incentive from students', I note that these are nothing but payments received from the complainant in lieu of PMS offered," the SEBI CGM says.
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