The Securities and Exchange Board of India (SEBI) has imposed a one-year suspension on Siddharth Pandey of Snigdha Equity Advisory due to violations of regulatory standards related to investment advisory services. In addition to the suspension, Pandey has been fined Rs. 6 lakh and instructed to refund Rs. 27.67 lakh to clients.
Pandey was found to be providing investment advice and promising guaranteed returns without holding the necessary SEBI registration. SEBI’s investigation revealed significant breaches of regulatory requirements.
The probe began following a complaint received on March 10, 2023, alleging that Pandey was involved in online fraud. The complainant reported investing Rs. 2 lakh in August 2022 after being lured by a membership plan that promised assured returns, which ultimately never materialized.
SEBI’s review of Pandey’s Know-Your-Customer (KYC) documents, bank statements, and communication records exposed that he was offering advisory services without the proper registration. Transactions in Pandey’s bank accounts, particularly his Kotak Mahindra Bank account, showed Rs. 32.77 lakh in credits from April 7, 2019, to March 2, 2023, with approximately Rs. 27.67 lakh linked to unregistered advisory services.
Further investigation revealed Pandey’s Facebook profile under “Snigdha Equity Advisory Cash,” which included his contact details and advertised advisory services. WhatsApp chats also showed Pandey offering various investment plans, including intraday calls and long-term memberships, with fees ranging from Rs. 75 to Rs. 25,000, and assurances of high accuracy and returns.
Under Section 12(1) of the SEBI Act, 1992, individuals providing investment advice are required to be registered with SEBI to ensure they meet regulatory standards. Additionally, Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2), and 11D grant SEBI the authority to issue directives to enforce compliance with the Act, including those governing market participants and the integrity of advisory services.
Pandey has been prohibited from selling assets, properties, mutual funds, shares, and securities, both dematerialized and physical, except to facilitate refunds to defrauded clients. He is also barred from conducting any investment advisory activities, directly or indirectly, until he obtains the necessary SEBI registration.
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