Sebi fine investment advisory: Sebi fines investment advisory firm Rs 19 lakh, dismissing its defence as ‘cock and bull story’

Sebi has dismissed the investment advisory firm’s defence as a “cock and bull story” and an “afterthought” designed to absolve itself of wrongdoing.

The regulator alleged that Sai Proficient failed to cooperate with the investigation and also colluded with an unregistered entity to defraud the public.

The order comes after Sebi uncovered several irregularities, including the advisory’s involvement with Shree Sai Proficient Financial Services (SSPFS), an unregistered entity that illegally provided investment advisory services.

Sebi noted that SSPFS was used as a front by Sai Proficient Research to collect investor funds. Over Rs 4 crore in transactions were traced across accounts linked to the two entities, revealing coordinated efforts to lure and deceive investors.

The regulator stated that Sai Proficient had acted in “connivance with SSPFS, using it as a camouflage to lure people into its net.”Sebi also highlighted that Sai Proficient failed to provide key documents during the investigation, including KYC records, risk profiling forms, and client agreements. Despite repeated notices, the firm did not cooperate with the regulator, further compounding its violations.The advisory also falsely promised returns of up to 95%, a practice explicitly prohibited under Sebi’s regulations. Such assurances, which misled unsuspecting investors, were deemed fraudulent and unfair trade practices, undermining investor trust in the securities market.