Money Laundering: ED Probes Portfolio Management Firm Unregistered With SEBI, Searches In Ahmedabad & Junagadh

Ahmedabad: The Enforcement Directorate's (ED) Ahmedabad Zonal Office has conducted search operations, under the provisions of the Prevention of Money Laundering Act (PMLA), at four locations in Ahmedabad and Junagadh, concerning a portfolio management company operating without registering with the market watchdog SEBI, a statement said on Sunday.

The ED initiated an investigation based on a complaint filed by the Securities and Exchange Board of India before a special court for SEBI cases, Greater Mumbai, under Sections 12 and 24(1) of SEBI Act, 1992 alleging that Alderbrooke Portfolio Management Services Pvt. Ltd. have collected/raised around Rs 24.38 crore from its clients for their portfolio management, despite not being registered with the SEBI as a portfolio manager or in any other capacity.

It had also failed to refund the said collected amount.

The ED probe revealed that Alderbrooke Portfolio Management Services Pvt Ltd.was collecting funds and indulging in unauthorised portfolio management activities by entering into agreement/MOU with the clients and managing their portfolio/ funds by investing in cash as well as derivative segment without obtaining registration from the SEBI in violation of Section 12 of the SEBI Act.

The search operation resulted in the recovery and seizure of various incriminating documents, the statement said. Further investigation is in progress, it added.

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