Imagine this.
SEBI walks into your office for a routine inspection, and within minutes, the entire staff disappears. Computers are wiped, servers are purged, and the boss is nowhere to be found.
No, this isn’t the script of a Netflix scam documentary.
This is what actually happened when SEBI tried to inspect the premises of Rajiv Kumar Singh, the man behind Elite Investment Advisory Services – a SEBI-registered Investment Adviser with registration number INA000003668.
What followed was a full-blown regulatory crackdown, a damning 37-page adjudication order, and… wait for it… a ₹35 lakh penalty.
But here’s the twist: SEBI found that Rajiv may have pocketed ₹2.37 crore in unexplained client funds.
Let’s dive into the whole story.
Who Is Rajiv Kumar Singh and What Went Wrong?
Rajiv Kumar Singh is a SEBI-registered individual investment advisor (Reg. No. INA000003668) operating under the name “Elite Investment Advisory Services.” That sounds official, right?
But what SEBI found during their January 2024 inspection was the exact opposite of what you’d expect from a licensed financial advisor.
When SEBI and BSE’s supervisory team walked into his office in Indore, they were in for a shock.
- The office was packed with 50–60 tele-callers giving stock tips on the phone.
- Most of these employees weren’t even qualified or certified.
- Many were paid in cash to avoid being on official records.
- And when the inspection began, Rajiv allegedly instructed employees to flee and even tried to delete data from the servers.
That’s not just shady, that’s full-on regulatory sabotage.
What SEBI Found?
Here’s a simple list of what SEBI accused him of doing wrong:
Operating Beyond Legal Limits
- Rajiv was registered as an individual IA.
- SEBI rules say once you cross 150 clients, you must register as a non-individual.
- Rajiv had over 1400 clients and still continued operating illegally.
Fake Risk Profiling
- There was no documented process to assess client risk.
- Everyone was advised to do F&O intraday trading, regardless of their risk appetite.
- No agreements were signed in many cases.
Excessive Fees
- SEBI caps advisory fees at ₹1.25 lakh per client/year under fixed-fee model.
- Rajiv crossed that limit for several clients.
Hidden Cash Flow – ₹2.37 Crore!
- SEBI found ₹2.37 crore worth of unexplained credits in his HDFC bank account.
- This raised serious doubts: Was he collecting fees from unknown/unregistered clients? Was he handling funds like a PMS? Was he charging more than disclosed?
No answers came from Rajiv. Only silence.
Grievances Galore
- SEBI pulled data from SCORES – the complaint portal – and found 174 complaints from 42 different clients.
- Promises of “assured returns” and “recovery of losses” were common themes.
- Rajiv even demanded login credentials from clients — a blatant violation.
The Great Escape: Rajiv Flees the Office
When SEBI showed up for inspection in January 2024, the entire staff ran away.
Yes, literally.
Only the IT guy and an office boy were found trying to lock the place. Rajiv showed up hours later. SEBI captured the fleeing staff on video.
Later, he admitted that he instructed his team to flee and delete data to prevent inspection.
That’s obstruction. And SEBI didn’t take it lightly.
Penalty Imposed by SEBI
Let’s talk numbers now. Based on the multiple violations, SEBI imposed a total penalty of ₹35 lakh under three major sections:
- ₹5 lakh under Section 15C for failure to redress investor grievances.
- ₹10 lakh under Section 15HA for engaging in fraudulent and unfair trade practices.
- ₹20 lakh under Section 15EB for violating Investment Adviser regulations like qualification norms, fee caps, client segregation, and improper record-keeping.
What Can Retail Investors Learn From This?
If you’re someone who follows stock market tips or signs up for advisory services, this case is a massive eye-opener.
Here are 5 golden rules to follow:
- Always check SEBI registration: Verify it on SEBI’s website before paying any fee.
- No one can promise returns: If someone does, it’s a trap.
- Ask for a risk profile form: If they don’t assess your profile, walk away.
- Don’t share login credentials: A legitimate advisor will never ask for it.
- Report suspicious behavior: Use SEBI’s SCORES platform to file complaints.
Conclusion
Rajiv Kumar Singh’s case isn’t rare. It reflects a pattern that’s become all too common — call centers posing as legit advisors, duping investors with fake promises and zero accountability.
SEBI’s action is a strong signal — if you flout the rules, especially those meant to protect retail investors, you will face the consequences.
Stay smart. Stay informed. And don’t fall for fast-talking sales pitches that promise “quick profits” in the stock market.
