Gunjan Verma fined for unauthorized investment advice

Gunjan Verma, an investment advisor, has faced penalties imposed by the Securities and Exchange Board of India (SEBI) due to her involvement in providing unregistered services, which is a violation of the SEBI Act. SEBI's investigation revealed that Verma had been offering unregistered investment advice to clients since 2018, which is against the regulations governing investment advisory services. Consequently, she has been fined Rs 1 lakh and ordered to refund all the service fees she charged her clients.

This regulatory action is part of SEBI's ongoing efforts to combat the activities of unregistered investment advisors. Another individual, Finfluencer PR Sundar, faced similar consequences and was barred from trading in the securities market for a year. Registered investment advisors (RIAs) have raised concerns about the disparity in regulatory compliance between themselves and influencers.

SEBI's primary objective is to protect investors from fraudulent advisors and ensure that individuals providing investment advice adhere to the necessary regulations and obtain appropriate registrations. Union Finance Minister Nirmala Sitharaman has also expressed her concerns regarding financial influencers and warned the public about the potential risks associated with ponzi apps that offer financial advice.