SEBI Lets Off Social Media Influencer Gunjan Verma With A Warning

The market regulator let off social media influencer Gunjan Verma with a warning in an investor advisory case, giving her the benefit of doubt.

The Securities and Exchange Board of India disposed of a show-cause notice issued against Gunjan Verma for allegedly providing investment advisory services without registration, according to an order on Friday.

While the regulator was unable to find conclusive evidence of her engaging in advisory services, it found ample proof of her receiving money from several clients, according to the order. And the regulator warned her against engaging in transactions on behalf of others in the securities market.

Gunjan allegedly represented herself as an investment adviser and received a total of around Rs 2.5 lakh from one of her clients, Megha Jain, between March 2020 to June 2021 for investing in the stock market and promised her assured profits under the arrangement, according to the order. A similar arrangement was made with two other clients, according to the order. But she possessed no qualifications to offer investment advice.

SEBI issued a show-cause notice in March 2023, asking why action shouldn't be taken against her for flouting investment adviser regulations. She neither filed her reply nor availed the opportunity for a personal hearing.

The market regulator, after going through the bank accounts and personal chats between Verma and her clients, however, found no violation of securities laws. According to the order, the nature of the services provided by her could not be ascertained. There is "no evidence, not in the form of any website, publication, pamphlet, SMS, or e-mail, that suggests that she was engaged in the provision of investment advice", the regulator said.