Description

SEBI issues enquiry order against registered Investment Adviser Sai Proficient Research Investment Advisory (INA000002504) for multiple violations including fraud, unfair client dealings, and non-cooperation with SEBI.

Summary

SEBI has issued an enquiry order (WTM/AS/WRO/WRO/32141/2025-26) under Section 12(3) of the SEBI Act, 1992 read with Regulation 27 of the SEBI (Intermediaries) Regulations, 2008, against Sai Proficient Research Investment Advisory, Proprietor Ms. Meeshika Vishwakarma (SEBI Registration No. INA000002504). The action follows an Enquiry Report dated December 24, 2024 by the Designated Authority, arising from investor complaints and a subsequent SEBI inspection.

Key Points

  • Noticee is a SEBI-registered Investment Adviser (INA000002504) operating as a sole proprietorship under Ms. Meeshika Vishwakarma
  • Enquiry initiated based on investor complaints received by SEBI against the firm
  • Designated Authority submitted Enquiry Report on December 24, 2024
  • Five categories of violations alleged covering fraud, client exploitation, and regulatory non-compliance
  • Violations span SEBI Act, PFUTP Regulations, and IA Regulations
  • Order issued under Section 12(3) of SEBI Act read with Regulation 27 of Intermediaries Regulations

Regulatory Changes

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

  • SEBI (Investment Advisers) Regulations, 2013
  • SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003
  • SEBI (Intermediaries) Regulations, 2008
  • SEBI Circular CIR/OIAE/2014 dated December 18, 2014 (complaint resolution timelines)

Compliance Requirements

Alleged violations and corresponding regulatory breaches:

  1. Non-cooperation with SEBI / Document non-submission — Regulation 13(a), 15(12), 25(i) and (ii) read with 24(3), Clause 8 of Schedule III Code of Conduct, Regulation 15(9) of IA Regulations
  2. Promising assured higher returns and collecting money via unregistered IA — Regulation 15(1) of IA Regulations, Clauses 1 & 2 of Schedule III Code of Conduct, Regulation 3(a)(b)(c)(d) of PFUTP Regulations, Section 12A(a)(b)(c) of SEBI Act
  3. Unfair client dealings, extorting money under pretexts, threatening forfeiture — Regulation 15(1) of IA Regulations, Clauses 1, 2, 5 & 6 of Schedule III Code of Conduct, Regulation 3(a)(b)(c)(d) of PFUTP Regulations, Section 12A(a)(b)(c) of SEBI Act
  4. Failure to resolve client complaints within specified timelines — SEBI Circular CIR/OIAE/2014 (December 18, 2014), Regulations 21(1) and 28(f) of IA Regulations
  5. Non-disclosure of registered office address change and on website — Regulation 13(b) of IA Regulations, Regulation 15(9) read with Clause 5 of Schedule III Code of Conduct

Important Dates

  • December 24, 2024 — Enquiry Report submitted by Designated Authority
  • February 2026 — Enquiry Order issued by SEBI Whole Time Member
  • Order reference: WTM/AS/WRO/WRO/32141/2025-26

Impact Assessment

This enforcement action is relevant primarily to retail investors and the investment advisory ecosystem:

  • Retail Investors: Investors who engaged Sai Proficient Research Investment Advisory may have been defrauded through promised assured returns, extortion, and threats — SEBI action offers recourse
  • Investment Advisers: Reinforces SEBI’s active monitoring of IA compliance, particularly around client conduct, complaint redressal, and cooperation with regulatory inspections
  • Market Impact: No direct stock market impact; this is an intermediary-level disciplinary matter
  • The action signals continued SEBI scrutiny of smaller, proprietary investment advisory firms operating in Western Regional Office jurisdiction
  • Potential outcome includes cancellation or suspension of SEBI registration (INA000002504) depending on final order

Impact Justification

High severity enforcement action involving fraud, assured returns promises, client extortion, and non-cooperation by a registered Investment Adviser; directly impacts retail investors who were misled.