Niftymaker's Ankit Gupta Asked to Refund Rs39.75 Lakh To Investors, Pay Rs6 Lakh Penalty for Running Illegal Investment Advisory
Moneylife Digital Team 28 November 2024
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs6 lakh on Ankit Gupta, proprietor of Niftymaker.com and directed him to refund Rs39.75 lakh collected as advisory fees from investors for offering unregistered investment advisory services and disseminating false and misleading claims.
 
In an order, G Ramar, chief general manager (CGM) of SEBI, says, "I  note that by disseminating false and misleading claims on his website,  Mr Gupta had used non-genuine and deceptive means and thereby defrauded investors and potential investors, which, I find is in violation of the provisions of Regulation 3(a), (b), (c) & (d) and 4(1) and 4(2)(k) of the PFUTP Regulations of SEBI Act, 1992."
 
The case came to light following a complaint by an investor, Ravi Kumar, in late-2018. The complaint alleged that Niftymaker.com provided paid investment advisory services without SEBI registration. 
 
SEBI's subsequent examination confirmed that the niftymaker portal, which claimed to offer live stock market recommendations and intraday tips, lacked the requisite registration.
 
SEBI's investigation uncovered that between April 2013 and September 2023, Mr Gupta collected Rs39.75 lakh from investors under various packages advertised on the website. His bank statements revealed credit entries with descriptors such as advisory fees and stock tips directly tied to the services promoted online. 
 
SEBI further noted that Niftymaker's promotional material made exaggerated claims about profits, misrepresented risk factors and lacked transparency about potential losses.
 
The market regulator inquiry also found no evidence of a research team, as claimed on the website, suggesting that the assertions made to attract clients were fabricated. In addition to operating without registration, Mr Gupta failed to comply with SEBI's repeated requests for information during the investigation, with official notices and letters going unanswered.
 
In response to SEBI's allegations, Mr Gupta claimed the fees collected were for stock market coaching, mobile repair services and other non-advisory activities. However, he failed to provide substantial evidence to support these claims. 
 
SEBI determined that the activities constituted investment advisory services, which required registration. Moreover, the website's misleading representations constituted a breach of SEBI's Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003.
 
SEBI also restrained Mr Gupta from selling assets, properties, mutual funds, shares and securities held by him in demat and physical form except for the sole purpose of making the refunds.
 
"Mr Gupta shall not undertake, either during or after the expiry of the period of restraint and prohibition, either directly or indirectly, investment advisory services or any activity in the securities market without obtaining a certificate of registration from SEBI as required under the securities laws," the market regulator says.
 
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