Most trading problems do not begin with a bad decision.
They begin with a phone call.
A stranger speaks confidently. They mention research, experience, and SEBI registration. They sound helpful. They promise support. Slowly, the conversation shifts from “guidance” to pressure, from “research” to assurance, and from “optional” to urgent payment.
That is the context in which a user raised serious allegations against Wealthy Brains. The company publicly claims SEBI registration as a Research Analyst. Yet the user alleges call-based inducement, guaranteed profit promises, fee pressure, and withdrawal of support after payment.
To understand where things may have gone wrong, we must break this down carefully, step by step.
How Wealthy Brains Presents Itself Publicly?
Wealthy Brains describes itself as a financial consulting and research firm. According to its website, the company:
- Provides stock market research and recommendations
- Covers equity, futures, and options segments
- Positions itself as a SEBI-registered Research Analyst
- Claims to base recommendations on detailed market research
The website prominently displays:
- SEBI Research Analyst Registration No.: INH000009764
- BSE Enlistment No.: 5577
At a surface level, this creates confidence.
But SEBI registration defines what a firm can do, not just who it is.
What SEBI Allows a Research Analyst to Do?
Can we trust SEBI-registered research analysts? SEBI regulates RA under the SEBI (Research Analysts) Regulations, 2014.
A SEBI-registered Research Analyst can:
- Publish research reports
- Share research-based recommendations
- Provide analytical views on securities
- Charge fees within SEBI-defined limits
A Research Analyst cannot:
- Promise or guarantee profits
- Assure daily income or fixed returns
- Recover losses for clients
- Link fees to profits or capital size
- Pressure clients through repeated calls
- Offer “end-to-end” trading guidance
- Manage trades or act like a portfolio manager
SEBI registration is not a license to sell certainty.
It is a responsibility to act within strict boundaries.
Why Call-Based Trading Inducement Is a Major Warning Sign?
SEBI pays close attention to how clients are acquired, not just to written disclosures.
Unsolicited calls that:
- Push Futures & Options trading
- Emphasize daily income numbers
- Downplay risk
- Create urgency to pay fees
often indicate mis-selling, even when the firm is registered.
Research Analysts must allow clients to:
- Decide independently
- Understand risks clearly
- Pay fees without pressure
Repeated calls with profit assurances cross that line.
User Complaint: What Is Being Alleged
The following section reflects user allegations, not a court or SEBI finding.
How the Interaction Allegedly Began
The user states that representatives calling under the Wealthy Brains brand contacted him directly:
- Ms. Disha – Relationship Manager
- Mr. Avinash – Research Analyst
According to the complaint, these calls:
- Encouraged Futures & Options trading
- Promised daily profits of ₹30,000–₹40,000
- Assured full trade guidance through calls
- Claimed losses would be recovered
- Suggested advisory fees would adjust from profits
What the User Says Happened Next
The user alleges that:
- Trades did not generate promised results
- Losses occurred instead of profits
- No written agreement was shared
- No proper risk disclosure was provided
- Call support stopped after fee payment
- Guidance shifted to SMS messages only
- Communication stopped when further payment was refused
The user describes financial loss, mental stress, and lack of accountability.
Payments the User Says He Made
According to the email, the user paid:
- ₹5,945.25 – advisory invoice
- ₹4,000 – basic plan
- ₹29,633 – credit card payment under pressure
The user alleges that representatives collected these amounts through coercive sales tactics and misrepresentation.
Why These Allegations Matter Under SEBI Rules?
Here is why each alleged action carries serious regulatory weight.
1. Guaranteed Profit Promises Are Strictly Prohibited
Can a Research Analyst share profit in India? SEBI does not allow any market intermediary, including Research Analysts, to promise guaranteed profits, fixed daily income, or assured returns.
Markets involve risk by nature.
When a representative promises figures like ₹30,000–₹40,000 daily profit, it creates a false sense of certainty and misleads retail traders into taking risks they may not fully understand.
SEBI treats such promises as misrepresentation, regardless of whether profits actually occur.
2. Loss Recovery Assurances Mislead Investors
Assuring a client that losses will be recovered crosses another red line.
No Research Analyst can:
- Predict outcomes with certainty
- Compensate losses through future trades
- Offset losses using “strategy” or “experience”
Loss recovery claims encourage traders to continue trading under false hope, which often deepens financial damage. SEBI considers this practice unethical and misleading.
3. Profit-Linked or Capital-Based Fee Models Are Not Allowed
SEBI requires Research Analysts to follow transparent, fixed-fee structures.
They cannot:
- Charge fees based on profits
- Sell plans based on capital size
- Adjust fees from trading gains
- Push upgrades after showing notional profits
When fees depend on profits or capital, advisers gain an incentive to push excessive trading. SEBI explicitly restricts this because it harms investors.
4. Call-Based Pressure Selling Violates Fair Conduct Norms
SEBI expects intermediaries to allow investors to make independent decisions.
Repeated calls that:
- Create urgency
- Downplay risk
- Push immediate payment
- Use emotional or financial pressure
violate fair conduct principles.
Cold calling combined with aggressive persuasion often signals mis-selling, even if the firm holds valid registration.
5. Absence of Written Agreement and Risk Disclosure Is a Serious Breach
SEBI requires proper documentation and disclosure.
Clients must receive:
- Clear service scope
- Risk disclosures
- Fee terms
- Limitations of responsibility
When a firm provides advice without written agreements or proper disclosures, it removes the client’s ability to understand risk and accountability. SEBI treats this as a compliance failure.
Why SEBI Takes Such Complaints Seriously
SEBI evaluates:
- How the client was approached
- What was promised verbally
- Whether the risk was explained
- Whether fees were fair and transparent
- Whether the conduct matched registration permissions
If conduct violates these principles, SEBI can act even against registered entities. Registration does not protect a firm from accountability. It increases responsibility.
How to Check SEBI Registered Research Analyst?
This step protects you before you trust any trading call.
Step 1: Ask for the Exact Registration Number
A genuine Research Analyst will share:
- A registration number starting with INH
- The name under which registration exists
Avoid firms that hesitate or deflect.
Step 2: Verify on SEBI’s Official Website
Visit the official website of Securities and Exchange Board of India.
Navigate to:
- Intermediaries
- Research Analysts
- List of Registered Research Analysts
Search by:
- Company name
- Individual name
- Registration number
If the name does not appear, the registration claim fails.
Step 3: Match All Details Carefully
Confirm that:
- Address matches
- Contact details match
- Email IDs match
Scammers often misuse someone else’s registration number.
Step 4: Understand the Limits of Registration
Even a valid Research Analyst:
- Cannot guarantee returns
- Cannot manage trades
- Cannot recover losses
- Cannot pressure payments
- Cannot offer capital-based plans
Registration defines limits, not privileges.
What to Do If You Face Similar Issues?
Preserve Evidence Immediately
Save:
- Call logs and recordings
- Payment receipts
- Invoices
- SMS and WhatsApp messages
- Emails
File a Complaint With SEBI
Use SEBI’s SCORES platform to report:
- Guaranteed return promises
- Fee coercion
- Conduct violations by a registered entity
SEBI treats such complaints seriously.
File a Cyber Crime Complaint
If deception and financial loss occurred:
- File at cybercrime.gov.in
- Select online financial fraud
- Upload all supporting evidence
Need Help?
Cases involving SEBI-registered firms confuse people because registration creates false confidence.
Register with us, and we provide clear, step-by-step guidance on:
- Verifying SEBI registrations correctly
- Identifying conduct violations
- Drafting effective SEBI and cybercrime complaints
- Understanding when mis-selling becomes fraud
The focus stays on evidence, process, and accountability.
Conclusion
Wealthy Brains claims SEBI registration as a Research Analyst.
That status does not permit:
- Guaranteed profit promises
- Call-based pressure selling
- Fee coercion
- Abandoning clients after payment
SEBI regulates how firms behave, not just how they brand themselves.
Before trusting any trading call, always verify:
- Registration
- Permissions
- Conduct
In markets, discipline protects you more than confidence ever will.
