ED Searches Alderbrooke Portfolio’s Offices For Operating Sans SEBI Registration
The probe was carried out under the provisions of the Prevention of Money Laundering Act
The Ahmedabad office of the Enforcement Directorate (ED) has conducted search operations at Alderbrooke Portfolio Management Services Pvt. Ltd, a portfolio management company, for operating without registering with the Securities and Exchange Board of India (SEBI)
The action began under the Prevention of Money Laundering Act (PMLA) provisions at the company’s four locations in Gujarat’s cities, including Ahmedabad and Junagadh.
The market watchdog had complained before a special court in Greater Mumbai under Sections 12 and 24(1) of the SEBI Act, 1992.
It alleged that Alderbrooke raised 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 also failed to refund the amount it collected.
The ED investigation revealed that Alderbrooke was collecting funds and indulging in unauthorised portfolio management activities. The company entered into agreements with clients and managed their funds by investing in cash and derivative segments without registering with SEBI, violating the norms.
The search operations resulted in the recovery and seizure of incriminating documents and the investigation was in progress.