Description

SEBI cancels Portfolio Manager registration of Amrapali Aadya Trading and Investment Private Limited for non-compliance with regulatory requirements.

Summary

SEBI has issued a final order cancelling the Portfolio Manager registration of Amrapali Aadya Trading and Investment Private Limited (Registration no.: INP000004862) for failure to comply with mandatory regulatory requirements. The company failed to submit required annual reports and certificates for FY 2021-22 and 2022-23 despite multiple advisories and reminders.

Key Points

  • Amrapali Aadya Trading failed to submit Corporate Governance Report for mandated periods
  • Company did not file Certificate of compliance with PMS Regulations and related circulars
  • Failed to submit Report on audit of firm level performance data
  • Did not provide Certification of Net worth as required
  • Failed to fulfill ‘fit and proper’ person criteria under Regulation 7(2)(j) and 8 of PMS Regulations
  • Show Cause Notice was served through public notice as postal delivery failed
  • Company neither appeared for hearing nor filed reply to Show Cause Notice

Regulatory Changes

No new regulatory changes introduced. Order enforces existing compliance requirements under SEBI (Portfolio Managers) Regulations, 2020 and SEBI (Intermediaries) Regulations, 2008.

Compliance Requirements

  • Portfolio Managers must submit annual Corporate Governance Reports within specified timelines
  • Mandatory filing of compliance certificates and net worth certifications
  • Requirement to maintain ‘fit and proper’ person criteria
  • Timely response to SEBI notices and participation in regulatory proceedings

Important Dates

  • March 07, 2024: Designated Authority appointed for enquiry
  • March 15, 2024: Show Cause Notice issued
  • July 29, 2024: New Designated Authority appointed
  • September 26, 2024: Personal hearing scheduled
  • December 02, 2024: Enquiry Report submitted

Impact Assessment

The cancellation removes one Portfolio Manager from the market, affecting clients who had invested through this entity. This action reinforces SEBI’s commitment to regulatory compliance and may prompt other portfolio managers to ensure timely submission of required reports and certificates. The enforcement action serves as a deterrent for non-compliance with intermediary regulations.

Impact Justification

Registration cancellation affects one portfolio manager but demonstrates regulatory enforcement