Sebi Penalises Gunjan Verma For Providing Unregistered Investment Advisory Services

The Securities and Exchange Board of India has imposed penalties on Gunjan Verma for providing unregistered investment advisory services. Verma, who has been offering investment advice to clients since 2018, was found to be in violation of the SEBI Act, according to an order issued by the regulatory authority.

The SEBI order states that Verma’s actions were in contravention of the regulations governing investment advisory services. SEBI has directed Verma to pay a penalty of Rs 1 lakh and refund the fees that she has charged her clients.

This action against Verma is part of SEBI’s ongoing efforts to crack down on unregistered investment advisors. The regulatory body recently barred finfluencer PR Sundar from trading in the securities market for a year due to similar violations.

SEBI’s actions aim to protect investors and ensure that individuals providing investment advice comply with the necessary regulations and registration requirements.

Several registered investment advisors (RIAs) have been raising the issue of disparity in regulations for them and finfluencers.

Last month, Finance Minister Nirmala Sitharaman too addressed concerns related to financial influencers in India and warned of the dangers of Ponzi apps offering financial solutions.

She noted though there is currently no proposal to regulate “fin-fluencers” a word of caution is essential. “If there are three or four people giving us very objective, good advice, there are seven others out of 10 who are probably driven by some other considerations,” she said.