Illegal Investment Advisory: Rahul Goswami of Investor India Research Banned for 1 Year
Moneylife Digital Team 27 September 2024
Securities and Exchange Board of India (SEBI) has imposed a one-year ban on Rahul Goswami, proprietor of Investor India Research, for providing illegal investment advisory services. SEBI has ordered Mr Goswami to refund Rs54.49 lakh, which he received from complainants and clients as fees for his unregistered investment advisory activities.
 
In the order, Dr Anitha Anoop, chief general manager (CGM) of SEBI, says, "I do not have any hesitation to conclude that the Mr Goswami was acting as an investment advisor. I find that neither Investor India Research nor its proprietor, Mr Goswami, were registered with SEBI in the capacity of Investment Advisor. Hence, I find that these activities were being carried out by Mr Goswami without obtaining the necessary certificate of registration as an investment adviser and therefore, Mr Goswami has violated the provisions of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations."
 
SEBI initiated an investigation against Mr Goswami following complaints from several investors alleging they received trading tips from the firm, resulting in financial losses.
 
SEBI probe revealed that Investor India Research was offering investment advice without the required registration under the SEBI Investment Advisers Regulations, 2013. 
 
Investor India Research operated the website investorindiaresearch.com, promoting itself as an emerging global business conglomerate with expertise in stocks, commodities, and forex markets. It offered advisory services, including intraday cash, HNI cash, delivery pack, future positions, option BTST and delivery trading tips, with subscription fees ranging from Rs5,000 per month to Rs7.8 lakh per annum.
 
Further scrutiny of the firm's financial records revealed that it received over Rs54.49 lakh through various bank accounts for unregistered advisory services between January 2016 and December 2016. Despite repeated requests from SEBI, Mr Goswami failed to provide detailed information regarding the amounts collected from clients, raising suspicions about the firm's operations.
 
Although Mr Goswami admitted to offering advisory services, he claimed ignorance of the registration requirement. SEBI dismissed this defense, citing the legal principle that ignorance of the law is not an acceptable excuse.
 
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