SEBI finds unregistered firm used SPRIA's identity for investment advice

This order addresses SEBI's investigation into Shree Sai Proficient Financial Services (proprietor Ms. Madhuri Garg) for allegedly providing unregistered investment advisory services and promising assured returns to investors, often using the identity of a registered advisor, Sai Proficient Research Investment Advisory (SPRIA).

Who it concerns: Shree Sai Proficient Financial Services (Proprietor: Ms. Madhuri Garg); Sai Proficient Research Investment Advisory (Proprietor: Ms. Meeshika Vishwakarma); Mr. Shyamsundar Virmani (Complainant); Easebuzz (Payment Service Provider).

What SEBI found or ordered

• SEBI alleged the Noticee engaged in unregistered investment advisory activities in violation of Section 12(1) of the SEBI Act and Regulation 3(1) of the IA Regulations.
• SEBI alleged the Noticee promised assured returns (specifically 90-95% accuracy and approx. INR 8 lac profit) in violation of PFUTP Regulations.
• Evidence cited includes a complaint from Mr. Shyamsundar Virmani regarding a payment of ₹5 lakhs and emails sent in the name of SPRIA.
• SEBI noted that payments from the complainant were reflected in the bank account of Shree Sai Proficient Financial Services, despite the account being linked to SPRIA's operations.
• The Noticee claimed she only provided administrative/back-office support under an outsourcing agreement and did not provide investment advice or hold client funds.
• The document provided is truncated before the final decision, so specific penalties, debarment orders, or refund directions are not stated in the text.

Also in the document

• The proceedings originated from complaints against a different, SEBI-registered entity (SPRIA), but SEBI found evidence linking the Noticee's bank account and email communications to the advisory activities.
• The Noticee argued that the delay in issuing the Show Cause Notice (5 years after business closure) was fatal to the case, though SEBI's final ruling on this point is not in the provided text.
• The case involves the use of a registered advisor's identity and registration number by an unregistered entity to solicit clients.