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Anugrah Stock and Broking Scam: Kalapi Shah of Teji Mandi Analytics Banned for 5 Years
Moneylife Digital Team 15 April 2025
Investor Interest
Market regulator Securities and Exchange Board of India (SEBI) has banned Kalapi Shah, a deemed director of Teji Mandi Analytics Pvt Ltd (TMAPL), from accessing the securities market for five years due to his involvement in fraudulent activities linked to Anugrah Stock and Broking Pvt Ltd (ASBPL). Mr Shah played a key role in facilitating unregistered portfolio management services (PMS) which were misleadingly offered as derivative advisory services (DAS).
 
SEBI’s investigation revealed that Mr Shah, along with Anugrah’s promoters Paresh Mulji Kariya, Sadhana Paresh Kariya and Om Sri Sai Investments, engaged in deceptive practices such as promising guaranteed returns and manipulating records. These actions contributed to a significant financial scam.
 
In the order, G Ramar, chief general manager (CGM) of SEBI, says, “Mr Shah, as a deemed director of TMAPL, was responsible for the company’s daily operations during the period of ASBPL’s fraudulent activities. He failed to exercise due diligence and took no steps to prevent or distance himself from the misconduct. Therefore, his claim of ignorance cannot absolve him of responsibility, and his submission is not accepted.”
 
This action stems from an earlier SEBI order issued on 28 February 2023 which found ASBPL and its associates guilty of fraudulent activities. Mr Shah, identified as an associated person (AP) of TMAPL, was deeply involved in the operations. Although his wife, Riddhi Kalapi Shah, was also connected to TMAPL, she was not involved in its day-to-day functioning. Mr Shah had previously offered to accept a three-year ban if found guilty, but due to the severity of his role, he was given the maximum five-year ban.
 
ASBPL and its associates promoted unregistered PMS while misleading investors by promising fixed returns and altering documents. TMAPL, as ASBPL’s authorised partner, acted as a coordinator between clients and ASBPL without disclosing the unregistered nature of the services.
 
Although Mr Shah did not hold a formal title at TMAPL, he was actively managing the daily operations, signing board resolutions, handling banking transactions and communicating with clients. These activities made him a central figure in the fraudulent scheme. Mr Shah defended himself by claiming that he was merely following the instructions of Anil Gandhi, TMAPL’s director, and had no knowledge of the illegal operations. He also argued that TMAPL did not receive client funds or provide PMS directly. However, SEBI rejected this argument, citing evidence of Mr Shah's direct involvement and control over operations.
 
SEBI's investigation also found that key emails had been deleted, likely to conceal the extent of the wrongdoing. These findings reinforced SEBI’s view that Mr Shah was not only aware of the misconduct but actively helped facilitate it.
 
SEBI order emphasised that under Section 27 of the SEBI Act, individuals who manage a company’s daily operations can be held liable even if they are not formally directors. Despite Mr Shah's claims, his involvement in facilitating fraudulent PMS offerings was evident.
 
 SEBI concluded that TMAPL, under Mr Shah's control, played a central role in coordinating ASBPL’s unregistered and unlawful investment services which violated the SEBI (Portfolio Managers) Regulations and the Securities Contracts (Regulation) Act.
 
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