SEBI orders Scient Capital for failing to maintain ₹5 crore net worth

This is a final order by SEBI regarding Scient Capital Private Limited, a registered Portfolio Manager, concerning its failure to maintain the required minimum net worth, submission of incorrect compliance reports, and non-compliance with NISM certification requirements for its Principal Officer.

Who it concerns: Scient Capital Private Limited (SEBI Registration No. INP000005166); Mr. Ramesh Rachuri (Principal Officer)

What SEBI found or ordered

• SEBI found that Scient Capital failed to maintain the minimum net worth of INR 5 crores required by the PM Regulations from January 15, 2023.
• SEBI found that Scient Capital submitted incorrect and misleading compliance reports for FY 2022-23 and 2023-24 despite not meeting net worth requirements.
• SEBI found that the Principal Officer, Mr. Ramesh Rachuri, failed to obtain the mandatory NISM Series XXI-B certification by the deadline of September 07, 2023.
• The order is a Final Order passed under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992.
• The examination period covered was from January 01, 2023, to December 31, 2024.

Also in the document

• SEBI noted that the company's net worth was reported as Rs. 4.26 crores (March 31, 2023) and Rs. 3.47 crores (March 31, 2024), both below the INR 5 crore requirement.
• The company stated in its reply that it was unable to meet the net worth criteria and had filed an application for a change in control to induct a new investor.
• The Principal Officer stated that he had scheduled the NISM exam for April 26, 2025, but had not obtained the certification as of the Interim Order date.