Quick Summary
Neha Kulkarni (name changed) purchased a premium package that came with a written promise of a fixed monthly return. Her total claim reached 6,60,500. No SEBI registered entity may guarantee investment returns to a client. That single written promise anchored her file, and our team recovered 90,000, a 13.6 percent share.
Neha was approached in late 2024 by a SEBI registered research analyst offering a high tier package that promised a fixed three percent monthly return, put in writing in the sales brochure she received.
She paid ₹1,50,000 to join the highest tier, drawn largely by the certainty the guarantee offered compared to other advisory options she had considered.
SEBI rules explicitly prohibit any registered research analyst or investment adviser from guaranteeing returns to a client. Markets carry risk by nature, and no registered entity can promise a fixed outcome regardless of market conditions.
The early months delivered returns close to the promised figure, which encouraged Neha to add more funds and upgrade her package twice, bringing her total payments to ₹6,60,500.
Returns turned sharply negative in the final quarter of the engagement. When Neha pointed to the written guarantee and asked for the shortfall to be made good, the analyst stopped responding to her messages.
A guarantee that holds true for a few months can feel like proof rather than a warning sign. That early accuracy is often what convinces a client to commit more funds to a package.
Neha kept the original brochure in physical form, since it had been handed to her at an in person meeting rather than sent digitally, which made it easy to produce later.
Later with the help of our team, she successfully got the refund amount of ₹90,000 through counselling.
Our Strategy: Turning the Written Promise Against the Analyst
We began with the original brochure and package documents that contained the written guarantee language, since this formed the clearest evidence in the file.
Step 1: Documenting the Unlawful Guarantee
We extracted the exact wording from the brochure promising a fixed monthly return, keeping the document as the anchor exhibit for the complaint.
Step 2: Mapping Financial Shortfalls vs. Promises
We compared the promised return figure against Neha’s actual account performance month by month, showing the gap once losses began.
Step 3: Citing Prohibited SEBI Practices
We cited the SEBI provision that bars any registered entity from guaranteeing returns, making clear that the brochure language itself was a breach regardless of performance.
Step 4: Submitting Irrefutable Evidence to SCORES
Our complaint through the SEBI SCORES portal opened with the guarantee language, since a written promise of fixed returns is difficult for any registered entity to defend.
The analyst argued the brochure language was marketing material and not a binding commitment. We showed that SEBI rules prohibit such language regardless of whether it was intended as a formal contract term.
Step 5: Representing Through SEBI SCORES & Rebutting Claims
With the documented breach established, our team escalated Neha’s case directly via the SEBI SCORES portal.
When the research analyst attempted to dismiss the brochure language as standard marketing material rather than a binding contract, we submitted regulatory precedents showing that SEBI guidelines strictly prohibit any guarantee language, regardless of intent or disclaimer fine print.
By maintaining focus on the explicit violation rather than subjective trade performance, we forced the analyst to engage in settlement discussions.
Case Result: ₹90,000 Successfully Recovered
The written guarantee proved to be a clear and undeniable breach once reviewed. Neha recovered ₹90,000 of her ₹6,60,500 claim, a 13.6 percent share.
The lower recovery reflects that most of her claim traced to market losses on invested funds rather than the fee itself. The case closed within fifteen weeks.
Were You Promised Guaranteed Returns by a SEBI Registered Entity?
Under SEBI regulations, no research analyst or advisor can legally promise fixed monthly returns.
If you have written proof or brochures promising fixed gains, FraudFree Team can build your case.
Register with us now.
Conclusion
No SEBI registered advisor can lawfully promise you a fixed return. A written guarantee is a breach on its own, whatever the early results looked like.
Keep any brochure, message, or document that promises a fixed outcome. That single piece of paper can anchor an entire complaint.
Report. Recover. Stay Fraud Free.
Frequently Asked Questions
No. Guaranteeing returns is prohibited for every SEBI registered research analyst and investment adviser, regardless of how the promise is phrased.
Most of her claim reflected trading losses on invested capital rather than fees paid, which typically results in a smaller recovery share.
A written guarantee, like a brochure or message, is stronger evidence, but a documented verbal promise through chat or recording can still support a complaint.
Treat it as a warning sign rather than a benefit. No legitimate registered entity can lawfully make that promise.
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