Why retail investors fall prey to fake advisers
While SEBI is increasingly cracking down on unregistered investment advisers, it has done little to break the ecosystem that nurtures them.
Why read this story?
Editor's note: 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 regulator showed that bank accounts of the three got deposits of Rs 1.2 crore between October 2017 and July 2020. Apart from the ban on operating in the market, the three have also been ordered to return this money to investors. SEBI was not done. A couple of days later, on 1 September, Piyush Shambharkar of The Profit Sharing was also barred from the securities market, and was told to refund Rs 1.98 crore that he had received between 23 …
More in Business
You may also like
Can SEBI get a good social media team for investor education?
With social media becoming a crucial source of financial guidance, it doesn’t help that many first-time investors remain strikingly unaware of regulations meant to protect them against unregistered entities.
Bira shareholders plan an EGM to oust the founder
A management shakeup may be in the works at the beleaguered beer brand, as investors and lenders want to remove founder Ankur Jain and his family from the board.
Mumbai's worsening garbage crisis, and the company in the thick of it
The Kanjurmarg landfill, operated by Antony Waste Handling Cell Ltd., is safe from the axe for now. But its fate remains a major source of worry for the company's shareholders and the city's residents alike.