If you are a beginner trader, you may have seen Telegram channels claiming high accuracy or unbelievably high returns.
For a beginner trader, these things look extremely tempting, which is exactly why the Arun N guaranteed returns controversy gained so much attention in the stock market industry.
Because when someone posts profit screenshots daily, and thousands of people follow them online, it starts feeling like maybe they have truly figured out the market.
The SEBI order against Arun N highlighted serious concerns around misleading marketing and exaggerated profit claims.
So let’s understand what exactly happened, what SEBI found, and why this case matters for every trader today.
Who Is Arun N Research Analyst?
Arun N is associated with the Harmonics Traders brand and is known in trading communities for options trading, harmonic trading concepts, and technical analysis education.
Arun N is a SEBI-registered Research Analyst. His registration number is: INH200007353.
Over time, he built a strong online presence through:
- Telegram groups.
- X (formerly Twitter).
- trading webinars.
- subscription-based trading services.
If you have spent time in trading communities, you have probably seen similar ecosystems before.
Free Telegram channels are used to build trust. Profit screenshots are posted regularly.
Then, traders begin following market calls. Slowly, premium subscriptions and paid trading communities are promoted.
And honestly, this is where many retail traders get emotionally attached.
Because when you repeatedly see people posting profits online, your brain naturally starts thinking: If others are making money, maybe I am missing out.
SEBI Order Against Arun N on Guaranteed Returns
The biggest concern in the SEBI order was not just trading calls.
It was the way profits and accuracy were allegedly being marketed to retail traders.
According to SEBI, multiple promotional phrases and return claims created unrealistic expectations among investors.
Let’s check the violations identified by SEBI:
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The 75% Accuracy Claim
One of the most discussed findings in the SEBI order was the 75% accuracy claim displayed on the Index and Stock Option subscription page hosted through the Gap-up platform.
Now think about this from a beginner trader’s perspective.
If someone sees 75% accuracy written prominently on a paid trading service page, what will they naturally assume?
Most people will believe: 75% of the trading calls are profitable. And honestly, that creates a very strong psychological influence.
During the proceedings, Arun N reportedly argued that the 75% accuracy statement referred only to the timing accuracy of calls and not guaranteed profits.
However, SEBI rejected this explanation.
According to the regulator, an ordinary investor would reasonably interpret such a claim as an assurance that most recommendations would generate profits.
-
Free Money For All and Promotional Language
According to the SEBI order, multiple phrases were used on Telegram and X (Twitter), including:
- Free Money For All.
- Power of Breakfast.
- Power of WALL AND PI Strategy.
These phrases may sound exciting to retail traders.
But from a regulatory perspective, such language can create the impression that trading profits are easy, frequent, or almost guaranteed.
And that becomes dangerous, especially in options trading, where risk is already extremely high.
SEBI observed that such communication could emotionally influence inexperienced traders and lure them toward paid subscription plans.
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Massive Return Claims and Profit Screenshots
Another major issue highlighted by SEBI was selective profit showcasing.
Promotional posts reportedly highlighted:
- 344% Return
- 5x Return
- ₹15,730 Single Lot Profit
- ₹59,000+ Single Lot Profit
Now pause for a second and think carefully. What happens when beginners see these types of claims daily?
They slowly begin believing trading success is easy.
They think everyone else is making money, and they are missing out by not joining. And this is exactly how fear of missing out gets created in trading communities.
But here’s the important question: Where are the losing trades?
According to SEBI, only profitable recommendations and high-return trades were being highlighted publicly, while losses were not being shown with equal visibility.
This created a one-sided and potentially misleading picture of trading performance.
Social Media and Gap-up Website Role in Arun N Guaranteed Returns Claims
The SEBI investigation also focused heavily on the digital ecosystem through which these services were promoted.
1. Telegram Trading Ecosystem
Telegram was reportedly used for:
- Positional updates
- Trade communication
- Promotional messaging
- Free Money style content
This model has become extremely common today. First comes the free Telegram group. Then trust gets built through screenshots and winning trades.
After that, premium subscriptions and paid communities are promoted. Eventually, emotional dependency increases over time.
2. X (Twitter) Promotional Activity
SEBI also examined promotional activity on X (formerly Twitter) under the Harmonics Traders handle.
According to the findings, posts highlighted:
- High returns
- Successful trades
- Strategy branding
- Profit-focused communication
There is nothing wrong with educational market commentary.
The problem begins when promotional communication starts creating unrealistic expectations around profits and accuracy.
3. The Role of Gap-up Website
The Gap-up platform reportedly hosted subscription pages and onboarding systems connected to Arun N’s services.
This included subscription plans, promotional claims, and onboarding processes. The SEBI order also mentioned revenue-sharing arrangements involving the platform.
According to the findings, a large portion of initial subscription revenue was reportedly shared with the platform itself.
SEBI Penalty on Arun N
According to the adjudication order, SEBI believed these practices violated both:
- PFUTP regulations
- SEBI Advertisement Code guidelines
The regulator stated that selective performance showcasing, exaggerated return claims, 75% accuracy promotion, and emotionally-driven marketing language could mislead retail investors.
This can create unrealistic expectations around trading profits.
SEBI also stated that phrases implying assured or risk-free returns are not permitted under the Research Analyst Advertisement Code.
According to SEBI’s adjudication order dated October 24, 2024, Arun N was fined a total penalty of ₹7 lakh for multiple regulatory violations.
The penalty was divided into two parts:
Why Guaranteed Return Claims Are Dangerous?
Guaranteed returns in the stock market are dangerous on many levels.
Some of the main reasons include:
1. Trading Is Never Risk-Free
The stock market is unpredictable by nature, especially in options trading, where prices can change rapidly within minutes.
That is why no analyst, trader, or finfluencer can consistently guarantee profits.
2. Easy Money Claims Create False Expectations
Phrases like sure-shot calls, high accuracy, or recover your fees in one trade make trading look easier than it actually is.
This creates unrealistic expectations for beginners and pushes many traders into risky decisions.
3. Profit Screenshots Show Only One Side
Most trading channels highlight only winning trades and huge returns.
But losses, failed trades, and capital erosion are rarely shown with equal visibility, which creates a misleading picture of reality.
4. Emotional Dependency
When traders keep following trading calls through social media daily, they often stop thinking independently.
Instead of learning trading properly, they become dependent on someone else’s market view, entries, and exits.
How To File a Complaint Against a Research Analyst?
If you feel you were misled by guaranteed returns claims, exaggerated profit promises, or Telegram trading calls that led to financial loss, you can officially report it.
Here is how to do that:
1. Collect and Save All Evidence
Before filing anything, keep every piece of proof safe. This includes Telegram chats, screenshots of trade calls, payment receipts, subscription invoices, emails, and promotional messages.
Do not delete or edit anything, even if it seems small. These details help establish what was promised versus what actually happened.
2. Contact the Research Analyst First
Reach out to the analyst or their support team through official email or grievance channels.
Clearly explain your issue – what service you took, what claims were made, and how it impacted you financially. Keep your message simple, factual, and polite.
3. File a Complaint in SCORES
If you do not get a proper response, you can escalate the issue on the SEBI SCORES portal.
You will need to register your details, upload evidence, and describe the complaint clearly.
This creates an official regulatory record that SEBI can review and track.
4. Lodge a Complaint in SMART ODR
If the issue is still unresolved or involves significant financial loss, you can move to dispute resolution systems like SMART ODR.
These platforms allow an independent authority to review your case and help resolve disputes between investors and financial service providers.
5. Stock Market Arbitration
If the dispute remains unresolved through SMART ODR conciliation, investors can proceed to formal arbitration under the same dispute resolution framework.
Arbitration can result in a legally binding decision after reviewing the available evidence and submissions from both sides.
Before starting this process, organise all supporting documents carefully, including payment proofs, chats, emails, call records, trading statements, loss calculations, and a detailed written explanation showing how the advisory recommendations or representations allegedly contributed to the financial losses.
Need Help?
Many traders simply do not know what to do after facing losses from Telegram trading groups or advisory services.
People often feel confused about how to organise evidence, file complaints, or understand the reporting process properly.
If you are facing a similar situation and do not know where to start, we can help you. Register with us.
Our team of experts can assist you in understanding complaint procedures, organising documentation, filing complaints on SEBI SCORES, and understanding arbitration or SMART ODR processes.
Getting proper guidance early can make the entire process much easier and more structured.
Conclusion
The Arun N guaranteed returns controversy highlights a much bigger issue in today’s trading industry.
For retail traders, the biggest lesson is simple: Never trust any trading service blindly, just because it looks successful online.
Always verify claims independently, understand the risks involved, and think critically before following paid trading calls or joining premium Telegram groups.
Because in the stock market, protecting your capital matters far more than chasing guaranteed profits.
