Our team helps multiple traders who get manipulated or get trapped by registered entities, either in brokerage charges, account handling in stock market, or profit sharing. Recently, we represented one such victim, Mr. Muhammad Chand Ansari, who got a 100% profit sharing scam recovery.
Here is the complete detail of the arbitration case against NiftyPro Trading Research, a SEBI-registered advisory firm accused of running a prohibited profit-sharing scheme.
This case serves as a cautionary tale for traders who fall for guaranteed return schemes and underscores the importance of knowing your rights and using regulatory frameworks for redressal.
The Background: A Misleading Promise of Profits
This all started when one of the representatives of NiftyPro approached Mr. Ansari, a trader from Saharanpur. He assured Ansari of guaranteed profits in stock market trading and offered advisory services at a cost of ₹1,00,000 per month.
When he expressed his inability to afford the package, they offered a 30% trading account handling with profit sharing.
Lured by the promises, Mr. Ansari paid ₹55,000 upfront under the profit-sharing agreement.
However, the company later issued an invoice falsely labeling the payment as a “service fee.”
Acting on their advice, Mr. Ansari invested ₹4,65,000 in the stock market without any proper risk management, resulting in the complete loss of his capital.
How We Helped the Victim?
Upon review, we identified multiple violations of SEBI’s regulations:
- Profit-sharing schemes are strictly prohibited for Research Analysts under SEBI rules.
- The firm’s actions amounted to fraudulent misrepresentation and breach of fiduciary duty.
- SEBI had already penalized the respondent ₹2,00,000 for similar violations, which strengthened our case.
We compiled all supporting materials, including:
- Voice recordings proving the existence of a profit-sharing agreement,
- SEBI’s penalty order dated 24 December 2024,
- Evidence of misleading advertisements and testimonials on the advisory’s website.
The Arbitration Process
The matter was initially referred for conciliation under NSE’s online dispute resolution platform (CORD). When conciliation failed, we proceeded to arbitration.
The hearing took place online on 24 March 2025. Our founder, Aseem Juneja, represented the claimant alongside his authorized representative.
The respondent was represented by his legal team, who denied all charges and claimed that the client had accepted the terms voluntarily.
The Final Verdict: Justice Delivered
On 29 April 2025, the Sole Arbitrator, Retired District Judge Amar Sinha, ruled in favor of our client. The order directed the respondent to:
- Refund ₹4,65,000 to the claimant within one month,
- Pay 15% annual interest in case of delay,
- Bear their own legal costs.
The arbitrator concluded that the respondent’s actions were in violation of SEBI regulations, including the Research Analyst Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Impact and Takeaways
This case demonstrates that with the right evidence and regulatory understanding, retail investors can reclaim their hard-earned money—even when facing SEBI-registered entities.
Key lessons:
- Never agree to profit-sharing or guaranteed return schemes—they are illegal and unethical.
- Record all communications and keep documentation.
- Use SEBI’s SCORES portal and NSE’s ODR platforms to file complaints.
- Legal support and representation can make a decisive difference in such matters.
Conclusion
We are proud to have secured a 100% recovery for our client in this case and reaffirm our commitment to protecting the interests of retail investors. This case is a reminder that justice is possible, even when fighting against seemingly powerful advisory firms.
If you or someone you know has fallen victim to a similar scheme, register with us now. We’re here to help you fight back—legally and effectively.
