Description

SEBI order against Lifeinspire Knowledge Solutions Private Limited and its directors for conducting unregistered investment advisory activities through website bankniftyoption.in in violation of SEBI Act and IA Regulations 2013.

Summary

SEBI has issued an order under Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) of the SEBI Act, 1992 against Lifeinspire Knowledge Solutions Private Limited (LKSPL) and its directors Shri M.S. Ahammed Ali and Shri M.S. Mohammed Ali for conducting unregistered investment advisory activities. The investigation revealed that LKSPL operated website www.bankniftyoption.in to offer investment advisory services packages without being registered with SEBI as an investment advisor, in violation of Section 12(1) of SEBI Act read with Regulation 3(1) of SEBI (Investment Advisers) Regulations, 2013.

Key Points

  • LKSPL conducted unregistered investment advisory activities through website www.bankniftyoption.in
  • The company offered various investment advisory packages of different durations and pricing
  • Clients were directed to make payments to LKSPL’s HDFC bank account or through Razorpay payment gateway
  • LKSPL used Telegram channels for promotional offers and client communication
  • Shri M.S. Ahammed Ali (Director, PAN: DDMPA2078A) and Shri M.S. Mohammed Ali (Director, PAN: FPKPM0819D) are the noticees along with the company (PAN: AAECL3050A)
  • Investigation originated from examination of Option Research Consultancy, where Noticee No.2 is a partner
  • LKSPL allegedly made false and misleading representations to clients through website and telegram channels

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing regulations.

Compliance Requirements

  • Any person or entity providing investment advisory services in securities market must be registered with SEBI as per Section 12(1) of SEBI Act
  • Investment advisors must comply with SEBI (Investment Advisers) Regulations, 2013
  • Investment advisory services cannot be offered without valid SEBI registration
  • Entities must not make false or misleading representations while offering investment advisory services

Important Dates

  • February 21, 2021: News article date mentioning bankniftyoption.in as subsidiary of LKSPL
  • October 29, 2025: Order circular reference number QJA/MN/SRO/SRO-DIV-III/31745/2025-26

Impact Assessment

Market Impact: Low - This enforcement action is specific to one unregistered investment advisory firm and does not affect broader market operations or trading activities.

Investor Impact: Medium - Clients who availed services from LKSPL/bankniftyoption.in may have been affected by unregistered and potentially misleading advisory services.

Regulatory Impact: This order reinforces SEBI’s commitment to taking action against unregistered investment advisors and serves as a deterrent for similar violations. It highlights the importance of due diligence by investors to verify SEBI registration before engaging investment advisory services.

Entity Impact: High - LKSPL and its directors face potential penalties under SEBI Act Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) for violations of investment advisor registration requirements and making false/misleading representations.

Impact Justification

SEBI enforcement action against specific unregistered investment advisor. High severity for the entity involved but low broader market impact as it affects only clients of this specific operator.