Description

SEBI issues enforcement order against Akshay Kumar and five others for operating unregistered investment advisory and research analyst services through Telegram channels, collecting fees and making fraudulent profit claims.

Summary

SEBI issued an enforcement order (Case No. QJA/MN/ERO/ERO-OTHER/32401/2026-27) against six individuals — Akshay Kumar, Mithun Sah, Arjun Sah, Ravindar Thakur, Rubi Kumari, and Beauti Kumari — for operating unregistered investment advisory and research analyst services through Telegram channels named “Intraday Jackpot” and “Professional Day Trading Institute”. The action was triggered by a public complaint and subsequent SEBI examination.

Key Points

  • Six noticees operated paid Telegram channels providing buy/sell/hold trading calls without SEBI registration as Investment Advisors or Research Analysts
  • Free channel “Intraday Jackpot” acted as a gateway funnelling users into paid subscription channels
  • Fees were collected through Rigi accounts linked to noticees’ PANs, including one (Beauti Kumari) whose PAN was used to create a Rigi account for collections
  • Noticees made false claims of NISM certification and gave misleading assurances of substantial profits and impressive returns
  • Trading advice was differentiated based on subscriber status/tier
  • Show Cause Notice was issued on November 24, 2025

Regulatory Changes

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

  • SEBI (Investment Advisers) Regulations, 2013 — Regulations 2(1)(l), 2(1)(m), and 3(1)
  • SEBI (Research Analysts) Regulations, 2014 — Regulations 2(1)(u), (wa), (zc), and 3(1)
  • SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 — Regulations 3(a), (d) and 4(2)(k), (o), (s)
  • Section 12(1) and 12A(c) of the SEBI Act, 1992

Compliance Requirements

  • Any entity providing investment advice or trading recommendations must obtain SEBI registration as an Investment Advisor (IA) or Research Analyst (RA) before commencing such activities
  • Fees for advisory/research services may only be collected by duly registered entities
  • Claims of certifications (e.g., NISM) must be accurate and verifiable
  • Profit guarantees or misleading performance assurances are prohibited under PFUTP Regulations
  • Use of third-party PANs or accounts to collect fees for advisory services is not permissible

Important Dates

  • November 24, 2025: Show Cause Notice issued to all six noticees
  • April 2026: Enforcement order passed under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act read with Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995

Impact Assessment

This order reinforces SEBI’s ongoing crackdown on unregistered finfluencers and Telegram-based advisory operations targeting retail investors. Retail investors who subscribed to these channels and paid fees may have been exposed to unsubstantiated trading advice and fraudulent profit claims. The case highlights systemic risks from social media and messaging-platform-based unregistered advisory services. Broader market impact is limited, but the enforcement signals continued regulatory scrutiny of digital advisory channels.

Impact Justification

High severity enforcement action for fraudulent unregistered advisory services targeting retail investors, but medium importance and impact as it concerns specific individuals rather than systemic market changes.