When investors fall prey to misleading advisory practices, most of them assume nothing can be done. But that’s not true. Recently, our team took up the case of Mr. Naman Sharma, who had lost money while availing services from Falconphase Investment Advisory. What followed was a long but rewarding journey through SEBI’s conciliation and arbitration process—ending with a ₹73,000 award in his favor.
The Backstory
In May 2024, Naman opened a Demat account and subscribed to Falconphase’s “Premium Equity Service.” He paid ₹11,900 in fees and was promised high profits. Instead, things went downhill.
Soon after, Falconphase’s representative convinced him to share his trading credentials. This was the turning point. Trades were placed in his account without proper consent, leading to a loss of ₹73,000.
When He Reached Out to Us
Feeling cheated and unsure of what to do, Naman contacted our team for help. We carefully studied his case, went through every payment receipt, chat, and email, and assured him that he had a strong chance of recovery.
From there, we guided him step by step, right from filing the complaint on SEBI’s ODR portal to preparing the evidence, representing him during conciliation, and later building his arbitration case.
Taking Action — Step One: Conciliation
The first step under SEBI’s process was conciliation. We filed his claim on the SMARTODR portal and attended conciliation meetings in February and March 2025. Unfortunately, Falconphase did not agree to resolve the matter here.
That meant the case moved to arbitration.
Arbitration: Where We Stepped In Strongly
When the arbitration started in August 2025, Falconphase tried to defend itself by saying:
- The client had “voluntarily” shared his credentials.
- As an Investment Adviser, they were not allowed to execute trades, so they couldn’t be held responsible.
- Chat and email records were inadmissible without technical certification.
We tackled each point head-on.
Most importantly, we highlighted an email written by Falconphase itself, acknowledging that their executive had caused the loss.
This document became the backbone of the case.
The Verdict
On 12th September 2025, the Sole Arbitrator ruled in Naman’s favor:
- Falconphase (through its representative) had indeed executed trades in violation of SEBI rules.
- They were liable for the ₹73,000 loss.
- The advisory fee refund claim was denied since services had been “consumed.”
- Each side had to bear its own costs.
The award gave Falconphase 30 days to pay up.
How Our Team Made the Difference
This outcome didn’t happen automatically. Our team:
- Organized all evidence (payment receipts, chats, emails).
- Built the legal argument around SEBI IA Regulations.
- Pre-empted the respondent’s objections on admissibility.
- Ensured the case stayed on track within SEBI’s strict arbitration timeline.
In the end, it was this preparation that helped turn a painful loss into a fair resolution.
Lessons for Investors
There are a few big takeaways from this case:
- Never share trading credentials—not even with an advisor you trust.
- Demand written risk profiling before you sign up for any service.
- Keep all receipts, chats, and emails—they become crucial evidence later.
- If you face a dispute, remember: conciliation and arbitration work. Don’t give up.
If, you have lost your hard-earned money in any such misleading services, then register with us now and get end-to-end assistance in filing and further representing your case in arbitration to get recovery of your losses.
Final Word
This case shows that investors are not helpless. With the right guidance and persistence, even a “small” claim like ₹73,000 can be fought—and won.
