Description

SEBI issues final order against Rajiv Kumar Singh, proprietor of Elite Investment Advisory Services, cancelling registration after inspection revealed multiple violations of Investment Adviser Regulations including fraud, non-cooperation, and promising assured returns.

Summary

SEBI issued a final order against Rajiv Kumar Singh, the proprietor of Elite Investment Advisory Services (SEBI Registration No. INA000003668), under Section 12(3) of the SEBI Act, 1992 read with Regulation 27 of the SEBI (Intermediaries) Regulations, 2008. The order follows an inspection conducted on January 18–19, 2024 covering the period April 1, 2022 to December 31, 2023, and a Show Cause Notice (SCN) dated December 9, 2025. The inspection found multiple serious violations of the SEBI (Investment Advisers) Regulations, 2013 and SEBI (PFUTP) Regulations, 2003.

Key Points

  • Noticee is Rajiv Kumar Singh (PAN: BZZPS6587H), proprietor of Elite Investment Advisory Services, registered as an Investment Adviser with SEBI registration no. INA000003668
  • SEBI conducted an inspection on January 18–19, 2024 for the period April 1, 2022 to December 31, 2023
  • SCN was issued on December 9, 2025 following post-enquiry proceedings
  • Ten distinct categories of violations were identified during the inspection
  • Noticee actively hindered and non-cooperated with the inspection process
  • The Noticee promised assured returns and/or recovery of losses to clients, a serious PFUTP violation
  • Fees were not charged in accordance with the SEBI Master Circular for Investment Advisers
  • Risk profiling was not conducted and suitability of advice to clients was not ensured
  • Client-level segregation of advisory and distribution services was not maintained
  • Material information disclosures to clients were not made as required under IA Regulations
  • Records were not maintained as required under Regulation 19 of IA Regulations
  • Grievance redressal mechanism information was not displayed and client complaints were not redressed
  • Qualification and NISM certification requirements were not met

Regulatory Changes

No new regulatory changes introduced. This order applies existing provisions under:

  • Section 12(3) of the SEBI Act, 1992
  • Regulation 27 of the SEBI (Intermediaries) Regulations, 2008
  • SEBI (Investment Advisers) Regulations, 2013
  • SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
  • SEBI Master Circular for Investment Advisers

Compliance Requirements

  • Investment Advisers must hold valid qualifications and NISM certifications as prescribed
  • IAs must strictly abide by all conditions of registration under IA Regulations
  • Client-level segregation of advisory and distribution services is mandatory
  • Risk profiling must be conducted for all clients, and advice must be suitable to each client’s profile
  • Fees must be charged strictly in accordance with the SEBI Master Circular for IAs
  • Material information must be disclosed to clients as mandated under IA Regulations
  • Records must be maintained as required under Regulation 19 of IA Regulations
  • Grievance redressal mechanism information must be prominently displayed and client complaints must be resolved
  • Promising assured returns or recovery of losses to clients is strictly prohibited
  • Full cooperation with SEBI inspections is mandatory; deliberate obstruction constitutes a serious violation

Important Dates

  • January 18–19, 2024: SEBI inspection of Elite Investment Advisory Services conducted
  • April 1, 2022 – December 31, 2023: Inspection period under review
  • December 9, 2025: Show Cause Notice (SCN) issued to the Noticee
  • March 25, 2026: Final Order issued by SEBI

Impact Assessment

This enforcement action results in the cancellation of the IA registration of Elite Investment Advisory Services, effectively barring Rajiv Kumar Singh from operating as an Investment Adviser. The order signals SEBI’s continued strict enforcement against IAs who promise assured returns (a fraudulent practice) and obstruct regulatory inspections. Clients of the firm are directly impacted as the entity can no longer legally provide investment advisory services. The breadth of violations — spanning qualifications, fee compliance, risk profiling, record-keeping, and active non-cooperation — indicates systemic non-compliance rather than isolated lapses, reinforcing SEBI’s zero-tolerance stance on IA misconduct.

Impact Justification

SEBI final order cancelling IA registration for serious violations including promising assured returns, non-cooperation with inspection, failure to conduct risk profiling, and multiple breaches of IA Regulations — high severity enforcement action against a registered intermediary.