Founded in 2016 by Vasanth Kamath, Anugrah Shrivastava, and Rohan Gupta, Smallcase aims to simplify stock investing for retail investors through professionally managed model portfolios
According to a notice issued by SEBI, the regulator found various violations by the IA, including forcing clients to use services of broker partners and outsourcing core compliance functions, which the IA claimed were part of its vendor arrangement with Smallcase.
The MCA has imposed a maximum penalty of Rs 5 lakh on the company itself, while founder Nithin Kamath, director Rajanna Bhuvanesh, CEO Vishal Virendra Jain received the maximum penalty of Rs 4 lakh, Rs 5 lakh, Rs 3.45 lakh, respectively.
The latest deal would allow CRED to offer investment product like direct mutual funds, FDs, SIPs, and digital gold to its user base besides financial planning tools. The company has also been looking to expand its new insurance product under fintech arm DASPL.
smallcase users are now tracking Rs 12,000 crore of their mutual fund investments on the app, and can soon start investing as as well as managing their SIPs/transactions from the app.