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SEBI Slaps Rs16 Lakh Penalty on Ashesh and Shivangi Mehta of Bliss Consultants for Running Unregistered PMS
Moneylife Digital Team 24 April 2025
Investor Interest
Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs16 lakh Bliss Consultants for running unregistered portfolio management services (PMS). SEBI also directed Bliss Consultants to refund of net monies collected plus simple interest at the rate of 12%pa (per annum). 
 
Ashesh Shailesh Mehta (noticee 1), the sole proprietor of Bliss Consultants, and Shivangi Ashesh Mehta (noticee 2), who claimed to be the director of operations, was also barred from markets for three years. They were found to have violated multiple provisions of SEBI regulations, including operating without the required registration and misleading investors.
 
Their bank account analysis carried out by the market regulator showed credits of Rs1,780.25 crore and debits of Rs1,676.85 crore linked to client investments and payouts. These funds were routed through the personal accounts of the noticees, bypassing any legitimate brokerage or custodial structure, SEBI says.
 
In an order, G Ramar, chief general manager (CGM) of SEBI, says, "I find that the noticees were directly involved in the violations as Mr  Mehta was the sole proprietor of Bliss, induced the investors, signed the agreements as well as traded on behalf of the clients whereas Ms  Mehta not only presented herself as the director of Bliss Consultants on its website but also involved in fund transfers along with trading on behalf of the clients and therefore, noticees have violated Regulation 3 of PMS Regulations read with section 12(1) of SEBI Act and Regulation3(a)(b)(c)(d),4(2)(k) and 4(2)(s) of SEBI (PFUTP) Regulations, 2003 of SEBI Act, 1992.”
 
SEBI launched an investigation following multiple complaints from clients of Bliss Consultants, alleging non-payment of returns and non-refund of investments. Investors were lured by the promise of high returns from trading in NIFTY Options, and Bliss Consultants reportedly charged a 30% commission on profits. Initially, returns were paid; but, since June 2023, neither returns nor invested amounts have been disbursed, triggering regulatory scrutiny.
 
The probe revealed that Bliss Consultants was conducting activities akin to PMS without obtaining the requisite registration under Section 12(1) of the SEBI Act and the SEBI (Portfolio Managers) Regulations, 2020. Operating through its mobile app ‘DIFM’ and formal agreements with clients, Bliss Consultants managed pooled funds and executed trades on behalf of clients using personal bank and trading accounts belonging to the noticees.
 
Further, the trading records indicated that Mr Mehta traded in 33.3mn (million) NIFTY Options contracts with a total buy value of Rs638.70 crore and a sell value of Rs620.79 crore. Meanwhile, Ms Mehta executed trades worth over Rs15 crore. Despite her claims of merely being an investor, her financial and trading activities showed otherwise, prompting SEBI to hold her accountable.
 
SEBI found that Bliss Consultants not only operated as an unregistered PMS but also made misleading public claims, including false assertions of protection under the NSE Investor Protection Fund. SEBI concluded that both Mr Mehta and Ms Mehta violated provisions of the SEBI Act and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
 
As a result, SEBI penalised Mr Mehta Rs10 lakh and Ms Mehta Rs6 lakh. Additionally, both have been restrained from accessing or dealing in the securities market, directly or indirectly, for a period of three years.
Comments
aman.sharma12744
2 weeks ago
When we will get our invested money with interest
Reply
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