SEBI Orders Sanbun Investments Proprietor To Refund ₹4.72 Crore, Bars Him From Securities Market For 3 Years

The Securities and Exchange Board of India (SEBI) has directed Nishaan Singh, proprietor of Sanbun Investments and Sanbun Capital Hedge Fund, to refund ₹4.72 crore collected from clients and investors through unregistered portfolio management activities. The regulator also barred him from the securities market for three years.

SEBI Quasi-Judicial Authority N Murugan passed the order on May 26 while re-determining the amount following a remand from the Securities Appellate Tribunal, which had upheld findings against Singh but asked the regulator to reassess the quantum collected.

“Further, upon considering the findings of the FAR, the submissions of the Noticee and observations made above, I note that the amount of Rs. 4,72,74,671.84 has been concluded as money collected by the Noticee towards unregistered PMS activity in his two bank accounts. In view of the same, I note that the Noticee is liable to refund the total amount of Rs. 4,72,74,671.84,” regulator ordered

The case arose from SEBI proceedings against Singh for allegedly providing portfolio management services without registration. After SAT's remand, Singh submitted that credits of ₹16.19 crore in two bank accounts included course fees, PMS-related receipts and unrelated amounts, while admitting receipt of ₹49.76 lakh towards PMS activity.

SEBI appointed a forensic auditor, which identified ₹82.65 lakh as receipts linked to unregistered PMS activity. However, the regulator found the audit inconclusive.

It independently reassessed the transactions, particularly credits classified as course fees and other receipts excluded from the PMS tally. SEBI also questioned the reliability of the auditor's verification methodology.

Based on this reassessment, SEBI concluded that Singh had collected ₹4.72 crore through unregistered PMS activities. It directed him to refund the amount within three months through a dedicated bank account. SEBI also ordered publication of public notices inviting claims and required independent chartered accountant certification for the repayments.