While SEBI is increasingly cracking down on unregistered investment advisers, it has done little to break the ecosystem that nurtures them.
On 30 August, the Securities and Exchange Board of India barred three people from the securities market: Lakhan Chauhan, Rohit Soni and Shivani Thakur.
The profiles of the three people make the case interesting. Chauhan was a worker at a petrol pump, Soni ran a gas distribution agency and Thakur was a former manager at a research company. Despite their varying backgrounds, they were proprietors of Indore-based RBS Global Capital, and acted as stock market advisers.
Despite not being a SEBI-registered investment adviser, or RIA, the three managed to convince gullible investors and pocketed hefty commissions. An investigation by the …
Furquan covers banking and financial services at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.