Scient Capital Fined Rs6 Lakh, Barred from On-boarding New Clients
Moneylife Digital Team 07 October 2025
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs6 lakh on Scient Capital Pvt Ltd, a registered portfolio manager, for multiple violations under the SEBI Portfolio Managers (PM) Regulations, 2020 and related guidelines. 
 
The company has also been prohibited from on-boarding new clients or accepting additional funds or securities from existing clients until it meets the required net-worth threshold and submits a certificate from a peer-reviewed chartered accountant (CA).
 
SEBI conducted an examination of Scient Capital since 9 June 2016. The investigation revealed that the company failed to maintain the minimum net worth of Rs5 crore required under the PM Regulations. 
 
The company also failed to submit accurate compliance reports as mandated by SEBI’s master circular for portfolio managers issued on 7 June 2024 and did not ensure that its principal officer (PO), Ramesh Rachuri, obtained the necessary NISM certification under PM Regulations and SEBI Certification Regulations (2007).
 
The net worth certificates submitted by Scient Capital for FY22-23 and FY23-24 showed amounts of Rs4.26 crore and Rs3.46 crore,  respectively, falling short of the required minimum. Additionally, the compliance certificates falsely indicated adherence to regulations, despite the shortfall in net worth.
 
Mr Rachuri, who became PO in January 2020, failed to obtain the required NISM-series XXI-B portfolio managers certificate by the stipulated deadline of 7 September 2023. Following his resignation, the company is operating without a certified PO, further compounding regulatory lapses.
 
SEBI noted that although Scient Capital partially complied by refraining from on-boarding new clients, it continued to violate key net-worth and certification requirements. The company’s client base and assets under management (AUM) have also declined, highlighting operational weaknesses.
 
The regulator emphasised that the Rs5 crore net-worth requirement is critical to ensure that only financially robust entities manage public funds, safeguarding investor interests.
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