Financial services group Religare Enterprises has acquired the portfolio management services (PMS) of the N Jayakumar’s Prime group.
The move was part of the group’s plan to expand in the portfolio management space, according to a person familiar with the matter.
“Religare has made the acquisition, they have been looking to grow bigger in the PMS space,” said the source.
A spokesperson for Religare confirmed the matter, and said that the acquisition has been completed, adding that it was a partial one.
“Religare Portfolio Managers & Advisors (RPMA) has acquired a part of the PMS business of Prime Broking Company India Limited. The team lead by T S Anantakrishnan has moved to the Religare platform and are responsible for Alternate/Hedge fund strategies as part of Religare’s broader alternatives focused Global asset management platform. All clients who consented to move to Religare had their complete portfolios transferred to Religare,” said a spokesperson in an emailed reply to a Business Standard query.
It declined to comment on the assets acquired or the valuations for the deal.
An email sent to Prime did not recieve a reply.
The National Stock Exchange had barred Prime Broking related entities from trading in June 2013. The trades were blocked following an investigation into alleged malpractices by Prime involving the shares of Gitanjali Gems. It had also halted pay-out, or settlement of the trades under investigation.
A number of High Networth Individuals(HNIs), who were part of Prime’s PMS business, were said to have been affected by the same. Prime is also said to have filed a suit against the NSE for losses caused on account of the moves.