SEBI Orders Rs2.79 Cr Refund, Fines Unregistered Advisor Rahul Dangi
Moneylife Digital Team 11 July 2025
Market regulator Securities and Exchange Board of India (SEBI) has directed Rahul Dangi, proprietor of Market Gainer (MG) and Star Infotech IT Solutions (SIITS), to immediately refund Rs2.79 crore to investors collected under the pretext of providing investment advisory services. 
 
MG and SIITS are also barred from accessing the securities market for five years. Additionally, a joint monetary penalty of Rs5 lakh has been imposed on both entities.
 
In an order, Santosh Shukla, the quasi-judicial Authority (QJA) of SEBI, stated that when a person makes exaggerated claims to lure innocent investors for personal gain, as seen in this case, it damages investor trust and undermines market integrity. “Such reckless conduct can harm the market and must be dealt with firmly to safeguard the securities market ecosystem.”
 
The action follows two investor complaints alleging that MG and SIITS offered unauthorised stock market tips, promised assured returns, and charged high fees. The complainants reported that they either suffered losses or received inadequate services. 
 
SEBI’s investigation confirmed these allegations through WhatsApp chats, email communications and promotional content on the firm’s websites. One complainant shared that SIITS had demanded Rs3.50 lakh for a five-month advisory package and had already collected Rs1.50 lakh.
Further investigation revealed that neither MG, SIITS, nor their proprietor Rahul Dangi were registered with SEBI as investment advisers. Despite this, their websites marketgainer.in and starinfotechitsolutions.com were actively promoting advisory services, including tips on stocks, futures, commodities, algo trading, and more.
 
SEBI found that from January 2018 to March 2024, a total of Rs2.79 crore was credited across four bank accounts associated with MG, SIITS, and Mr Dangi all without proper regulatory approval.
 
The regulator emphasised that investment advisers must meet strict regulatory standards, including having professional qualifications, making full disclosures, assessing client risk profiles, and maintaining proper records. These requirements are essential for protecting investors from being misled by unqualified and unscrupulous actors.
 
In conclusion, SEBI held that Mr Dangi’s actions demonstrated a blatant disregard for the law. It warned that permitting such individuals to continue operating in the market would endanger investor safety and compromise the integrity of the financial system.
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