In a significant enforcement action, the Securities and Exchange Board of India (SEBI) has imposed a penalty of ₹1 crore on Trdez Investment Pvt Ltd for allowing the use of its stockbroker registration and failing to act on multiple investor complaints. In March, Trdez Investment was expelled by stock exchanges for several violations.
The order follows an extensive examination triggered by complaints and an application filed under the Right to Information (RTI) Act. This probe revealed that Trdez Investment and its directors were linked to a network of entities allegedly mobilising funds from the public under the guise of investment schemes promising monthly returns of 8% to 12%.
These schemes, run through entities such as Infinite Beacon Financial Services and Sispay TFS, bore the hallmarks of Ponzi-like operations, in which early investors were paid returns from funds collected from new investors.
SEBI found that several partnership firms and entities involved in these activities had common directors with Trdez Investment. In particular, five of the company's seven directors were also partners in Trdez Financial Services, one of the key entities through which funds were routed.
The regulator also noted extensive financial linkages, including transactions running into hundreds of crores between these entities and the personal accounts of directors. One director’s bank account alone recorded credits exceeding ₹247 crore during the period under review.
Investigations further revealed that investors were misled into believing that these schemes were associated with an SEBI-registered broker. Funds were collected through multiple bank accounts, and investors were provided with dashboards showing fictitious profits.
In many cases, withdrawals were later blocked, and funds were allegedly diverted or converted into cryptocurrency without the consent of the account holder. Despite receiving numerous complaints alleging impersonation and misuse of its name, Trdez Investment failed to take effective action.
SEBI observed that the company’s response was limited to generic press releases and disclaimers that did not even mention the entities involved in the alleged fraud, and no meaningful legal or regulatory steps were taken to stop the misuse of its registration.
A key finding of the regulator was that Trdez Investment itself was largely inactive as a broker. The company had executed negligible proprietary trades and had not carried out a single client transaction since its inception.
SEBI concluded that the broker licence appeared to have been used primarily to lend credibility to the fund mobilisation activities of associated entities.
Holding Trdez Investment responsible for violating the code of conduct for stockbrokers, SEBI says the firm failed to maintain integrity, exercise due diligence and prevent fraudulent misuse of its registration, rendering it unfit to operate as a market intermediary.
Notably, stock exchanges had already taken action against the firm. Trdez Investment was expelled by the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and the Multi-Commodity Exchange in March 2026 for multiple defaults, including the violations established in this case.
Concluding that the violations were serious and had potentially caused significant investor harm, SEBI imposed a penalty of ₹1 crore, stating that the punishment was commensurate with the gravity of the misconduct.
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