Gunjan Verma Fined Rs. 1 Lakh by SEBI for Providing Unregistered Investment Advisory Services
MUMBAI (India CSR): The Securities and Exchange Board of India (SEBI) has fined Gunjan Verma Rupess 1 lakh for providing unregistered investment advisory services. Verma, who is based in Delhi, was found to be providing investment advice to clients without being registered with SEBI.
In its order, SEBI said that Gunjan Verma had been providing investment advice to clients since 2018. She had been charging clients a fee for her services, but she was not registered with SEBI as an investment advisor.
SEBI said that Verma’s actions were in violation of the SEBI Act, which requires investment advisors to be registered with the regulator. The regulator also said that Verma’s actions had harmed the interests of investors.
In addition to the fine, SEBI has also directed Verma to stop providing investment advice and to refund the fees that she has charged to her clients.
This is the latest in a series of actions that SEBI has taken against unregistered investment advisors. In recent years, SEBI has cracked down on unregistered investment advisors, who often prey on unsuspecting investors.
If you are considering investing in any financial product, it is important to make sure that the person or firm you are dealing with is registered with SEBI.
“Securities and Exchange Board of India (hereinafter referred to as “SEBI”) had received a complaint dated March 08, 2021, from one Ms. Megha Jain (hereinafter referred to as “Complainant”) against Ms. Gunjan Verma (hereinafter referred to as “Ms. Gunjan/ Noticee”). The Complainant had inter alia stated that the Noticee opened her Demat account in Goodwill Wealth Management Private Limited and promised commitment of profits and received Rs. 2,50,000from her through Google Pay in its State Bank of India (hereinafter referred to as “SBI”) Bank account. It was also stated that the Noticee made false commitments and mentally harassed the complainant when she tried to get the refund. The Complainant vide her email dated June 21, 2022, further narrated that the Noticee took money for investing in the Stock market and assured profits and claimed to be an investment advisor.” SEBI Order said.
Gunjan Verma: Who is She?
Gunjan Verma is a Delhi-based investment advisor who was fined ₹1 lakh by the Securities and Exchange Board of India (SEBI) in May 2023 for providing unregistered investment advisory services. Verma was found to have been providing investment advice to clients since 2018 without being registered with SEBI.
In its order, SEBI said that Verma had been charging clients a fee for her services, but she was not registered with SEBI as an investment advisor. SEBI said that Verma’s actions were in violation of the SEBI Act, which requires investment advisors to be registered with the regulator. The regulator also said that Verma’s actions had harmed the interests of investors.
In addition to the fine, SEBI has also directed Verma to stop providing investment advice and to refund the fees that she has charged to her clients.
Verma has not commented on the SEBI order.
Here are some tips for avoiding investment fraud:
- Do your research. Before you invest in any financial product, make sure you understand the risks involved.
- Get everything in writing. Make sure you have a written agreement with the investment advisor that clearly outlines the terms of your relationship.
- Be wary of high-pressure sales tactics. If an investment advisor is pressuring you to invest, be wary.
- Report any suspicious activity to SEBI. If you suspect that you have been the victim of investment fraud, report it to SEBI.
What are ‘Unregistered investment advisory services’
Unregistered investment advisory services are investment advisory services provided by a person or firm that is not registered with the Securities and Exchange Board of India (SEBI). SEBI is the regulator of the securities market in India and it requires investment advisors to be registered with the regulator before they can provide investment advice to clients.
There are a number of risks associated with using unregistered investment advisors. First, unregistered investment advisors may not have the necessary expertise or experience to provide sound investment advice. Second, unregistered investment advisors may not be subject to the same regulatory oversight as registered investment advisors. This means that they may be more likely to engage in fraudulent or unethical practices.
If you are considering using an investment advisor, it is important to make sure that the person or firm is registered with SEBI. You can check the registration status of an investment advisor on SEBI’s website.
Here are some tips for avoiding investment fraud:
- Do your research. Before you invest in any financial product, make sure you understand the risks involved.
- Get everything in writing. Make sure you have a written agreement with the investment advisor that clearly outlines the terms of your relationship.
- Be wary of high-pressure sales tactics. If an investment advisor is pressuring you to invest, be wary.
- Report any suspicious activity to SEBI. If you suspect that you have been the victim of investment fraud, report it to SEBI.
(Source: SEBI | Order in the matter of unregistered investment advisory by Gunjan Verma)
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