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Photo: Mint
Photo: Mint

IndiaNivesh shuts PMS business amid Covid-19 outbreak, market volatility

  • PMS can transfer shares to client’s individual demat accounts by using scanned copy of client master report which can be procured on email from the broker
  • Industry sources say IndiaNivesh Group is shutting down all its businesses including its broking, distribution and institutional equities

IndiaNivesh Investment Managers has decided to wind up its portfolio management services (PMS) business due to market turmoil and difficult economic circumstances due to ongoing covid 19 outbreak.

"In view of the current market volatility pursuant to the global outbreak of Covid 19 and its long term impact on our business, we have decided to close our operation at IndiaNivesh Investment Managers Pvt. Ltd, a SEBI registered portfolio manager. Thus our sole strategy of Sprout Portfolio will be wound up," said Sandeep Jain in a letter to clients on Sunday.

According to Jain, PMS can transfer shares to client’s individual demat accounts by using scanned copy of CMR or client master report which can be procured on email from the broker. No need of any physical copy. For customers who do not have demat accounts, PMS can sell their shares and transfer the money into client’s bank accounts.

"Moreover, here we would like say that the entity is not winding up and will continue till the smooth handling of assets of our clients," he said. The PMS business was launched in March 2015 and currently manage a portfolio of 60 crore with around 190 clients. The PMS business has around 30% cash including liquid investments in its portfolio.

However, industry sources said that IndiaNivesh Group is shutting down all its businesses including its broking, distribution and institutional equities. Sources said that the group is facing funding issues due to its concentrated exposure to a large retail firm, where ratings agencies have raised concerns about promoter debt. The company has said, “We deny all the rumours / speculations about our associations with any group whatsoever."

A press statement issued later in the day said, “As regards, broking operations, we are regular in meeting all the exchange obligations, however there have been some delays in releasing the pay outs due to current lock down (although broking operations are exempted from the lock down, the critical staff are not able to reach the office for carrying out the smooth operations)."

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