MLM / Chain Money
QNet: Six bank accounts frozen, more arrests soon, says EOW

According to an additional commissioner of police, the EOW has frozen six bank accounts of QNet that have Rs46 crore as balance, and their teams would soon visit Bengaluru and Chennai to arrest some suspects

Economic offences wing (EOW) of Mumbai police, which is probing Hong Kong-based controversial multi-level marketing (MLM) operator QNet has so far frozen six bank accounts related with the company.


According to a report from the Times of India, these bank accounts have a balance of Rs46 crore. In addition, Manjunath Hegde, arrested in this cheating case, has been sent to judicial custody, the report says.


"We have asked the firm to submit all documents. Some office-bearers have approached the Sessions Court for anticipatory bail," the report says quoting, Rajvardhan Sinha, additional commissioner of police, Mumbai.


Sinha told the newspaper that over 50 complainants have approached them in the QNet cheating case and the police will again visit Bengaluru and Chennai to arrest suspects.


Earlier this month, EOW registered a case against QNet, for allegedly duping thousands of investors by selling them plastic and glass products terming them miraculous objects for treating severe diseases like Cancer.


The complainant, Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet. Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain-related diseases.”


The FIR names five accused, including QNet's Hong Kong-based founder Dato Vijay Eswaran, a Malaysian by birth and an Indian by ethnicity, who is photographed hobnobbing with the Prince of Saudi Arabia, in order to enhance its credibility in the Gulf.


What is QNet?

QuestNet and GoldQuest, the MLM companies that had shut shop in 2009 following police action are back with a bigger bang. They now call themselves as QNet and are thriving in an environment where tens of thousands of Ponzis and MLM companies are able to lure people into believing that they have the formula to instant riches and a high growth career.


While QuestNet and GoldQuest, which mainly sold numismatic gold coins (they claimed they were limited edition coins that whose value would increase over time) in 2009 were forced to shut shop in India, their new avatar QNet offers a broader range of lifestyle ‘enhancing’ products (holiday packages, diamond watches, bio-discs, Chi-Pendants and herbal products for anything between Rs30,000 to Rs7 lakh), which promise fabulously high returns so long as new distributors are enrolled rapidly. Its product brochure says, “With 8 ways to earn and up to 50% of the sales paid out in commissions, QNET offers the most dynamic and innovative compensation plan in the direct selling profession.”


Like SpeakAsia, QNet is also registered in Singapore and has been banned in many countries, including Iran. In 2007, APLI, the direct selling Association of Indonesia, considered GoldQuest or QuestNet as a pyramid scheme.


According to, QNET has received a Fatwa by Dar al-Ifta that its business is not halal within Islamic law on the basis that it could harm the Egyptian economy. The company has also been accused of operating a product-based pyramid scheme.


At the end of August 2012, the Ministry Of Commerce and Industry of Saudi Arabia banned Qnet accusing it of stealing and falsification as well as not being registered with the ministry. Furthermore, a message was published on the official website of the Saudi Arabian Ministry of Commerce and Industry warning the Saudi Arabian people not to be involved in such schemes under any pressure of false promises, mentioning the company name 'QNet' specifically as one on those fraudulent schemes operating in the country.


The governments of India, Iran, Indonesia, Nepal, Rwanda, Saudi Arabia, Sri Lanka, The Sudan, Syria, and Turkey have at various points shutdown local offices of the company, arrested key members involved with the company, or pre-emptively banned the company from entering,, says.


Business Model

According to, QNet's business model has been described as a simple pyramid scheme, where initial entrants to the scheme do make money, but as the number of independent representatives (IR) increases, finding more IR's becomes harder and harder, until those that join late are unable to recover even their initial outlay and the model collapses.


The compensation plan operates by the recruitment of customers by existing IR. An IR is provided with an ID that gives access to a 'tracking centre' (TC) in its computer system through which the IR's sales are tracked. A TC has a left and right customer group. Every customer owns a TC which is then placed on the left or right customer side of the IR's TC. A 'direct' transaction (a customer's personal reference or sale) is counted as one transaction. An 'indirect’ transaction (someone in the cusomer's TC buys/refers/sells) is also, counted as one transaction. The company pays $250 each time three product sales on an IR's left customer group are matched by three product sales on the right.


RYTHM foundation -derived from the acronym 'Raise Yourself To Help Mankind'- is a charity organization created by QI Group.


What QNet sells?

At Present, QNet mainly markets products made by other subsidiary companies of QI Group. The products are in travel packages, nutrition, personal care, home care, collectibles, fashion accessories and education.


One of the products being marketed by the company is the Amezcua Bio Disc (also spelled BioDisc and BioDisk) which the company claims can "redefine and harmonise the energy of water, greatly maximising its positive affect on the human body". These and other detailed claims of often miraculous properties have been widely denounced as fraudulent by various scientists, media commentators and watchdog organisations. Critics have noted that the claims are based on thoroughly debunked pseudoscientific concepts such as hexagonal water and that they have never been validated by a peer-reviewed process. QNet has stated in a document published to its representatives that there are no known test and approval bodies to date on such products, says.


You may also want to read…

QNet: EOW freezes Rs45 crore in two bank accounts of the MLM


QNet: Mumbai police register fraud case against the MLM

QNet, the MLM has resurfaced in India; will people be duped again?


QNet, the MLM company, has no answers to Moneylife’s simple questions


QNet: The “money game” played by MLMs to lure the gullible


Forbes magazine's strange activism on behalf of the shady MLM QNet


MMM India, QNet ‘cult’ growing. Why government is dragging its feet in tackling this MLM menace?




1 month ago


Ever since you lost your hard earned money in QNET SCAM, you all have multiple questions and facing multiple issues like :

1. Where and whom to approach for recovering your hard earned money?

2. How to help fight and stop this QNET SCAM?

3. How to teach your CHEATER UPLINES a lesson?

4. Issues regarding the “so called” “REFUND POLICY”.

5. Are you eligible for “Compensations”?

6. Issues regarding action buy police authorities.

7. What is the status of the court cases etc.

These are an example of just a few issues and concerns you are facing, but there is GOOD NEWS for you all. We have been working overtime to try and bring an end to these woes and issues faced by Victims of Financial Frauds like this QNETSCAM.

So guys and girls tomorrow is the BIG DAY finally , Please do join us tomorrow (Sunday) afternoon at 1.30 PM sharp at Andheri east, outside Sarangi Restaurant (Just 1 minute from the Andheri station on the east side).

Please do come and also inform other victims of the QNETSCAM.
Tomorrow (Sunday) afternoon sharp 1.30 PM, outside Sarangi Restaurant , Andheri-east, Mumbai.

Please note we have limited seats, first come first served basis make sure to reach in time __/\__ . You can contact on 7498063701 in case of difficulty in locating us :)

Jai Hind.

jitu moni

2 months ago
Four persons, who were associated with Hong Kong-based QNET, a multi-level marketing (MLM) company, and duped 200 persons by promising them jobs, were arrested by Central Crime Station (CCS) officials on Thursday. However, the MD and directors of QNET and its sister company Vihaan Direct Selling are still at large.

Deputy commissioner of police (CCS) Avinash Mohanty said Sreenath Konda, Prasanna Kumar Reddy, V Kanchana, B Dhan Raj were arrested from different locations in the city for cheating people.

Police said the accused had been enrolling gullible people as agents by collecting Rs 10 lakh from a group of 10 persons.

Each person would be given status of promoter, direct them to attract a group (i.e., 10 persons) and make them join QNET by paying Rs 10 lakh, for which the promoter would be assured commission.

jitu moni

2 months ago
Mumbai: The Supreme Court on Thursday directed the Maharashtra Government to file the latest status report regarding investigation so far on the anticipatory bail plea of World Billiards champion Michael Ferreira and four others, who are facing charges of money laundering in the multi-crore QNet case.

The next hearing in the matter will take place on September 14.

Besides Ferreira, the others whose anticipatory bail plea were rejected were Malcom Desai, Vanka Srinivas, Maganlal Balaji, all directors of M/s Vihaan Direct Selling (India) Pvt. Ltd, and Suresh Themiri, director of Transview Enterprises.
They are facing charges under Sections 420 (mischief), 468 (forgery), 471 (using forged document knowing it is not genuine) of the Indian Penal Code (IPC).

Justice Mridula Bhatkar of the Bombay High Court, who took on record the statement of public prosecutor Pradeep Gharat that investigations were still on, had in May rejected their anticipatory bail pleas.

Ferreira had started the operations of QNet, a multi-level marketing company, in India via his firm Vihaan Enteprises.

The QNet cheating case began with a complaint by Gurpreet Singh Anand, who raised his voice after losing Rs. 30,000.

According to the police, the money involved has crossed Rs. 1,000 crores in the alleged scam with more than five lakh investors allegedly losing their money in the case against QNet which is being probed by the Economic Offences Wing.

jitu moni

3 months ago
NewsAmbit, New Delhi
Delhi Police Economic Offence Wing(EOW) has registered an FIR against QNET India/Vihaan Direct selling India Private Limited and its three independent representatives on the allegations of cheating and fraudulently operating the multi level marketing, which is illegal in India. Police have initiated the investigation and suspecting huge scam, which is estimated in crores.
A senior Police officer of EOW said that we received a combined complaint against QNET India and its three independent representatives from more than dozen of people in the month of March this year. As per the allegations of main complainant Anuj Jain alleged that his friend Himashu Aggarwal approached him for an business opportunity. He said that he is an independent representative(IR) of an e-commerce based company. He said that he can arrange an meeting with the other IR’s who will tell you about the business and if they find you suitable you will get chance to be a part of the company. After few days Himanshu called Anuj Jain to come with a CV at a café situated in Nehru Place area on 29 November 2015. Anuj reached there, where he met with Himanshu and his to associates Anita Jaggi and Kanika. Trio told him about the business profile and also assured that this is not a networking marketing company. They demanded Rs 6.5 lakh to be a member of the company. They also said that company has millions of customers. IR of the company is treated as a partner and also got the profit share for each sale. After three four days Anuj gave them 6.5 lakh rupees but after some time he got to know that this is a multi level marketing company and fraudulently cheating innocent persons by roping them in it’s banned business with the help of IRs.
Police said that Anuj is not the only complainant so many more complainants also approached to EOW. After which a preliminary enquiry had conducted. It was found that some persons who are termed as IR contact their friends and close persons to join a new e-commerce business. They don’t tell the name of the company or complete business module at the beginning. After alluring them they set various amounts from the victim. Independent Representatives(IR) get training during the joining and talk to make further members. These kinds of IRs of the company are operated from different cafes and food courts situated in Delhi and NCR.
Those who join the company get user id etc and products like ravel packages, some other items etc are shown purchase from their money. The delivery address given in the portal is also found of overseas area most of the time and mostly that address is too fake type location only which shows that no products are being sold and it is a completely a money circulation scheme. Two websites were found involved in the namely and were found mated to Vihaan Direct selling (India) Pvt ltd which is stated Indian Franchisee of Hong Kong based net company. Investigations are on. Police are trying to unearth the whole network of the IRs on which this company is running its business unlawfully in Delhi. A case has been registered u/s 420/120B/34 IPC and 4/5/6 of Prize Chits and money circulation Schemes(Banning) Act,1978 .

Profiles of IRs
Himashu works with Samsung
Anita Jaggi works with RBS

jitu moni

5 months ago

Bluru QNet agent who earned 50L a yr as commission held
Mumbai: The Economic Offences Wing (EOW) has arrested Ram Singh, an accused in the Rs 1,000 crore QNet case, for earning Rs 50 lakh or more as commission each year from proceeds of the crime.

Singh, a Bengaluru resident, was arrested last week after the imigration authorities at Bangalore airport detained him over a look out circular notice (LOC) issued by the Mumbai police. "We are going through all his bank account details and trying to ascertain the source of money to his account," said DCP Pravin Padwal of the EOW.

Singh's name had cropped up during the initial investigation in 2013 but the police could not locate him then. In January 2015, a police team visited his Bengaluru residence but did not find him there. The house was locked. He is the 19th accused to be arrested in this case so far.

"We are working to arrest all the culprits in this case. A special investigation team has been formed to nab the othe accused invovled," said Dhananjay Kamalakar, joint police commissioner, EOW. Singh, said police sources, has been sending money to his daughter who is studying in Canada. "We have to know his source of income. He has sent a major chunk of money to Canada. We suspect this money was gained from QNet. Moreover, he was looking after the QNet business in Dubai and has been shuttling between Dubai and India. We got his passport number late. Soon after getting it, we issued an LOC notice and he was detained," said an officer.

A special MPIDA court in February this year rejected the anticipatory bail plea of Michael Ferreira (77) winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, and four others, Malcom Desai, Vanka Srinivas, Maganlal Balaji, all directors of M/s Vihaan Direct Selling (India) Pvt Ltd and Suresh Themiri, director Transview Enterprises. They all have approached the high court now in the QNet case.

"They posed as a marketing firm which would sell bio-discs, watches, herbal products, holiday packages, etc. They even claimed that by using the bio-disc, one can cure cancer and brain diseases," cops said. Some money has been transferred to Malayasia, Singapore and Hong Kong, too, cops added.

jitu moni

5 months ago
Mumbai: The city's economic offences wing (EOW) is now looking into allegations that several Bollywood celebrities campaigned for the cheat firm, QNet, through advetisements or by promoting the schemes of the self-proclaimed marketing firm.

Gurupreet Singh Anand, complainant in the Rs 1,000-crore QNet cheating case, on Wednesday said at least four Bollywood actors promoted the Ponzi schemes at different times in the QNet's promotional programs in United Kingdom and Malaysia. He has submitted a 23-page letter wherein he has attached the celebrities' pictures promoting the programs.

"I have submitted letter and all the relevant information to the EOW on May 12. I am hoping some action soon," Anand told TOI. He alleged that the money was laundered from India to Hong Kong and Malaysia.

Anand was speaking at a press conference where suddenly a group of QNet sympathisers appeared with "I trust QNet" placards.. They were later asked to leave the conference room.

jitu moni

6 months ago

QNet: Secret SFIO report says MLM, Ponzi schemes a threat to national security
Read article

jitu moni

6 months ago

Hello Everyone

The company Qnet is celebrating VCon from 3-7 May. As a present,yesterday late night, I posted lot of comments on numerous pics uploaded on Instagram. I also posted on VChief Pathmans account. Unfortunately, they kept deleting my posts and had to ultimately block me. If each one of us, Indians, takes to instagram and starts posting messages like me, then they would have to either block us or abandon their account, which is their money making tool. You can start with Qnetofficial,TheV, Pathmans account, etc with phrases like Pyramid Scheme, Qnetscam, Franchise Fraud, Police arrests, court cases,Cheating, etc. They cannot stop us if we all work as one unit.

Hope we all teach them a lesson and save other fellow Indians.

Jai Hind

jitu moni

6 months ago
CM Devendra Fadnavis has assured detailed inquiry into QNet: BJP
Chief minister Devendra Fadnavis has promised to make a detailed inquiry of the alleged irregularities by the QNet multilevel marketing company and take action against the offenders, said BJP spokesperson Madhav Bhandari on Saturday. Former union minister P. Chidambaram’s wife was a legal counsellor with the company.

The QNet company, which was earlier known as Goldquest, has cheated 12 lakh people to the tune of thousands of crores of rupees. The court has rejected anticipatory bail to the accused in this case. When the CM was contacted about this, he promised to make a detailed inquiry and take action. If necessary, he said that the CBI’s help would also be taken, said Mr Bhandari.

The party spokesperson demanded that the role of former Union minister P. Chidambaram and his wife needs to be probed in this case. “Mr Chidambaram’s wife was a legal counsellor of the concerned company. Taking note of complaint registered by a lawyer from Chennai, the Central Vigilance Department handed over the case to the CBI. The complaint also has a mention of former Union minister Shashi Tharoor. However, the CBI did not investigate the matter during the tenure of Congress government at the Centre,” he alleged.

In Maharashtra, the wife of Gurpreet Singh Anand had in 2013 filed a complaint of fraud against the company. However, there was not much inquiry during the Congress-NCP regime. But since the court has denied anticipatory bail to other accused, including sportsman Michael Ferreira, the investigation can be expedited. Many sensational things are expected to come out in the investigation as the CM has promised to carry out a detailed probe in the case, said Mr Bhandari.

jitu moni

6 months ago

Mumbai police seeks Zee business help in probe of QNet

jitu moni

6 months ago
A group of investors in the QNet multi-level market case on Sunday gathered near Holy Family Church and marched as a protest and public awarness against ponzi schemes. The protesetors reached at the house of accused Padma Bhushan Michael feriera in the QNet cheating case. The protesters were holding placards that read, Michel Ferriera Shame Shame! and Ban QNet".

"We chose Bandra for protest since most of the accused in this scam reside here. We had informed the police in advance and stated that the peaceful march will be for awareness about such fraud schemes and protest against such ponzi schemes," said Gurpreet Singh Anand, the first complainant in the QNet cheating case. He added that thgough it was his birthday but he did not spend time at home and was busy in the awareness drive.
Similar protests were held in New Delhi, Bangalore and Hyderabad on Sunday. Last month a special MPIDA court rejected the anticipatory bail plea of Michael Ferreira, winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, and four others in the QNet case. They have approached the Bombay High Court for anticipatory bail. Ferreira, 77, and others had applied for anticipatory bail in 2014.

jitu moni

6 months ago
The economic offences wing of Mumbai police, probing the multicrore Qnet scam, has issued notices to Indian Super League (ISL) officials to gather details about taking sponsorship from the tainted company.
Qnet had made celebratory association as the official direct selling partner of Goa Football Club (FC Goa) throughout the Indian Super League 2015 season, from October to December. FC Goa is a part of the ISL football league tournament. Sources said the police are trying to find out the how the proceeds of crime of a company under serious investigation, have been used to sponsor the team. Police are also baffled as how the Qnet managed to generate money when its accounts have been seized. "We have sum moned ISL officials to understand the amount and flow of money in their sponsorship from the Qnet company which had defrauded several investors," said an official.

jitu moni

6 months ago

The fight against the Qnet scam wheré more than 7000 crores of rupees has been laundered out to foreign shores from India has just got bigger.

The Saradha Scam which started mainly in Bengal looks relatively smaller compared to the Qnet scam which had defrauded people across various cities like Mumbai,Delhi,Bangalore,Hyderabad etc for over a period of 10 years.

To unite and protest against this MLM scam plaguing India, all victims,activists, are requested that they gather outside Holy Family church,Hill Road,Bandra West at 10.30 A.M. tomorrow 24th April,2016.

Various press and media agencies will be present to cover the event meet and address grievances to authorities.

The current government has taken note of the Qnet scam and matter will be taken up at upcoming Parliament session.

All Indians are cordially invited to support the cause and join in the protest. We need to end the scam by spreading awareness and recover the money taken away by the scamsters.

A request to all to please forward this message on Facebook, twitter and WhatsApp groups... Jai Hind


7 months ago

Adding to Hong Kong-based public relations firm Qnet’s woes, the Bombay High Court in a recent order rejected its appeal against an order to freeze its accounts by a Maharashtra Protection of Interest of Depositors (MPID) court.

The appeal in the HC on October 13 was filed by Concept Public Relations India Limited, which acted as a media co-ordinator for Qnet. The latter is being investigated by the Economic Offences Wing (EOW) for a financial scam involving ‘chain link multilevel marketing’. According to the police, people were encouraged to pay an amount and join as ‘members’ with the promise of high commissions for getting more such ‘members’ into the organisation. In the process, the appellant had admittedly received more than Rs 45 lakh as service charges. During the course of the investigation, the bank accounts of the appellant were frozen.

The counsel appearing for the company submitted that the company was only providing media and public relation services to Qnet. Being a professional services organisation, the company acted as a media service provider as proposed by Qnet, he contended, adding Concept is providing services to the other reputed organisations also and that the professional charges earned by the company cannot be frozen.

The Special Public Prosecutor told the court that the scam allegedly involving Qnet runs into hundreds of crores of rupees and is being investigated by the EOW, and that the investigating agency had sufficient material to freeze the company’s accounts.

HCL and Tech Mahindra to benefit more from rupee depreciation

It is unlikely that the entire benefit from rupee depreciation will flow to margins in the IT services industry, since market share shifts remain the big growth driver says Nomura

HCL Technologies and Tech Mahindra have until now shown rupee depreciation benefits in margins. Since they do not have near-term pressure on margins, they are likely to continue to show higher benefits of rupee depreciation in margins, says  Nomura Financial Advisory and Securities (India) Pvt Ltd in a research note on Indian IT services industry.


Nomura says, both HCL and Tech Mahindra, followed by Infosys and TCS, will be gainers from the rupee depreciation in the forex market.


“Rupee depreciation theoretically benefits margins of IT companies as a large proportion of costs are in rupees, while revenues are largely in foreign currency. The theoretical sensitivity of US dollar and Indian rupee to margins is about 30 basis points (bps) for every 1% depreciation in domestic currency and about 1.5% on earnings for every 1% rupee depreciation,” the research note said.


The impact of rupee depreciation on specific software companies is shown in the table below:

However, it is unlikely that the entire benefit from rupee depreciation will flow to margins in the IT services industry, since market share shifts still remain the big growth driver. Rupee depreciation benefits are likely to be used for better revenue growth rather than margin improvement, Nomura said.


For HCL Technologies, in addition to improvement of existing business profitability, there will be gains from over $3 billion of deals signed over the last three quarters when the rupee was between 54 and 59. These deals will thus be more profitable under current conditions. Nomura sees upside to HCL Technologies’ guidance of 18.5%-19% margins at US dollar- Indian rupee rates of 55.


For Tech Mahindra, with pricing at a discount to peers and no salary hikes until fourth quarter of FY14, Nomura sees no major near-term fall in margins. The company has guided to keeping EBITDA margins stable at about 21% levels, if the currency holds at near 60 levels and will likely see the margins exceed these targets, in Nomura’s view, if current US dollar- Indian rupee spot rate sustains. The only near-term tempering impact would be on account of $115 million worth of forex losses in the balance sheet, which could bloat given the rupee depreciation. 


Following table shows the impact of rupee depreciation on earnings per share in the IT services industry for select companies:




Investment ‘advisors’ ignore SEBI; just 11 registrations so far

Just 11 entities, including seven individuals have registered as investment advisor with SEBI since the advisor regulations came into force. Is it too early? Or does it vindicate Moneylife’s stand that this regulation is irrelevant given the structure of financial services business?

The much-touted investment advisory regulations from Securities and Exchange Board of India (SEBI) have failed to enthuse registration. A SEBI release on 28th August reminded market intermediaries of this new regulation possibly because only 11 entities, including four firms have registered as investment advisors. The reason is obvious. No financial advisor wants to earn a living only out of advisory fee. There is no market for it. In any case, the advisor regulation applies to just one product that SEBI regulates – mutual funds. It does not apply to insurance, a major source of mis-selling.


While bringing advisory regulations, a well-intentioned SEBI wanted to make a distinction between selling financial products and advising about them. In the first case, the seller (distributor) is working for himself and the financial services company because he is driven by commissions. He is not working for the investor, necessarily. It creates a conflict of interest when he is ‘advising’. In the second case, the advisor is acting for the investor. He is advising for a fee about the best choices. SEBI has asked everyone to make a choice between the two.


You cannot both sell for commission and also advise the investor. Well, may be it is too early, but given a choice, it appears that everybody would want to sell for commission and not advise for fee. This is simply because there is no market of investors seeking pure advice.


Interestingly, the Financial Planning Journal, published by the Financial Planing Standards Board of India (FPSB) has names of over 1,750 financial advisors. These people are from the most likely category to register with SEBI as investment advisor. However, there are only seven individuals, who though it proper to get themselves registered with SEBI.


While drawing up regulations, SEBI did not take into account the actual situation on the ground – average to poor mutual fund performance, quality of advice and mis-selling by large distributors and investors’ attitudes.


SEBI has also enshrined in the advisor regulations that investors have to be profiled for risk including age, investment details, income details, risk tolerance, liability and others. Will risk profiling ensure that the lead will not be passed on to those agents who would share their commissions with the advisor friends?


While removing the so-called conflict of interest in selling, SEBI has also created difficulties for the honest distributor. Considering the actual situation on the ground, a financial advisor asked, “What is a distributor supposed to do when customers ask for advice? Is he supposed to not help the customer? Or what does he do when the distributor knows that what the customers is asking for is an inferior product? Should he allow the customer to make the mistake?”


The line between advisors and distributors is thin. When Moneylife spoke to a smart and ethical distributor of financial products, he said, “I will not be a surprised if (these) so-called investment ‘advisors’ work closely with ‘agents’ wherein the agents would give a pass-back of the commissions they earn to advisors who recommend customers to them. This currently happens as well, but it is more open as there is no restriction, where financial planners have tied up with agents of certain companies. Though the commissions are not disclosed, they earn enough for passing on a lead to an agent.”


What is happening in reality is that distributors sell for commissions but they also advice because customers ask for advice and without some advice and handholding, no selling can happen, especially financial products.


READ: What will SEBI’s Investment Advisor Regulations Achieve?


Moreover, the only mainline investment product that comes under SEBI regulation is mutual funds. Issues related to other financial products will be dealt with the respective regulators. As such, there would be no single body regulating investment advisors.


Investment advisor regulations have been discussed on and off for the past five years. In 2007, the SEBI published a consultative paper on “Regulation of Investment Advisors”. In 2008, the D Swarup Committee re-examined the issue and submitted its report in 2009. The report was revolutionary in its thinking prescribing all financial products have to become “no load”. Opposition to this report was vociferous. After much heat and dust, including dharnas and morchas by a section, the report was buried deeply and quietly. In September 2011, SEBI published another concept paper on the regulation of investment advisors, which led to much debate. Then in September 2012, SEBI come out with the draft regulation on investment advisors in India. Finally, in January, the market regulator came up with its regulations to oversee financial advisors, which came into effect from April 2013.


In short, post-April, anyone who wanted to provide investment advice had to register with SEBI and follow the rules contained in the new regulations. However, in the first five months, as per SEBI data, only 11 entities, including four institutions and seven individuals found it worth registering. Even, the institutions who have registered may have done the registration just in case to avoid problems in the future. 


Here is the list of entities registered with SEBI as investment advisors...



Shashank Gaikwad

3 years ago

Dear Sir, Thanks for very informative article.
I am a trader in Nifty futures and have many followers on trading forums following me. I was planning to start a subscription based service for my followers, to earn some steady income, along with my trading (as in trading, we don't have a regular monthly income - it usually comes in bursts). After going through your article, it seems unlikely that I am allowed to do such a business from SEBI anymore. However, there are few doubts in my mind regarding people who are exempt:

1. Since I trade only in Nifty Futures, can it be considered as "(a) Any person who gives general comments in good faith in regard to trends in the financial or securities market or the economic situation where such comments do not specify any particular securities or investment product;"

2. I am a graduate Engineer, having 10 years of working experience and 7 years of trading experience. Looking at the criteria set by SEBI for investment adviser, even if I want become an investment adviser, it looks almost impossible to do so. Does that mean that I simply cannot start this business, even though I might have the required skill set (no formal degree, but I have been very profitable in trading and have also successfully completed many trading challenges)

Sukhvinder Sidhu

3 years ago

The fate of the right intention and direction cannot be judged in such a short time. The regulator could, perhaps, take this balanced approach under the present conditions. For the present it has tried to keep working space for all the players.

The new system ought to be there for the sake of some benefits in the long term, as is also evident in the spirit of the regulatory changes happening worldwide. Just because something has been taking place till now does not justify it being the most correct thing. Change is the most constant thing, and history tells us that most people do not accept change readily as they like 'sitting over the heap of cheese found sometime back and not bothering that it will somehow finish with time'.

The most hard thing is to make a beginning, which has been done. The new idea has now taken root. The motive is for the long term, so short term negativity is not justified. Also, we cannot find 100% perfect system anywhere at anytime.


prakash praharaj

In Reply to Sukhvinder Sidhu 3 years ago

Well said Mr sukhvinder!Change management is a process and we will find things better say in 2/3 years.


3 years ago

operational head india
singapore media and channel group
Is it enough if they suspend the 11 investment advisors what about the clients and as such all the stock brokers are cheat and criminals and there accounts are fudged it need strict and scientific SFIO audit then only stock market could recover and win the confidence of indian investors


3 years ago

Having advised retail clients on more than Rs.1000 million worth of long term mutual funds investments for close to two decades, have this to say:

1) It is a thankless job.

2) There is far more handholding required after investment happens. And most of it being to prevent clients from doing something stupid, or getting them to sit tight and do nothing; - where most people are seriously short on patience, and are simply not satisfied with what they own,

3) The investment advisor's chief role is to protect client's from committing costly mistakes. - Unfortunately this aspect is not even acknowledged by majority of the investors.
(You don't need an advisor to manage your money, but to protect you from those self-defeating tendencies that can get you into trouble while investing)&

4) And last but not the least, it is far more rewarding to be an investor and take care of your own investments . . . than be an investment advisor in the current regulatory environment.



In Reply to Nilesh KAMERKAR 3 years ago

You are on the dot sir.
It is high time we make the regulator answer for their foolish regulations. It is time to regulate the regulator.
But who is to bell this cat.

R Balakrishnan

In Reply to Nilesh KAMERKAR 3 years ago

Very well said Sir.
SEBI is all over the place. It cannot even do what it is primarily supposed to do. There seems to be a kind of megalomania sweeping across the regulator. In the first place, not one of them have any kind of experience other than the bureaucracy - graft and red tape. And do they have the means and the capabilities to regulate? Sad regulators we have. Where a fund manager can be my driver, but an advisor needs to be registered!! Passengers and the conductors need permits. Driver does not need any license. This is the comic organisation named SEBI


In Reply to R Balakrishnan 3 years ago


After the FINMIN, it would be the regulators turn to learn some basic principles of economics.


In Reply to Nilesh KAMERKAR 3 years ago


our Present Finance Minister is bothered only his welfare rather than countries welfare he is an sadist you knew how he killed the NBFC and where by many people who were employed in this NBFC in their mid 40's and 50's lost their job lost their diginity and as such we cannot expect any relief from him even though he is well qualified person but he is not bothered about indian investors

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)