SEBI attaches accounts to recover Rs 60.8 lakh in unregistered advisory case

The Enforcement Action

The Securities and Exchange Board of India (SEBI) has moved to attach the bank accounts, post office accounts, demat accounts and mutual fund folios of Rajesh Nath and Shubham Rai, the two people its 2023 order identified as operators of the website www.wisdomcapitalgroup.com, to recover Rs 60,79,622 that the regulator says remains unpaid.

The notices, dated 29 October 2026, were issued by SEBI's Recovery Officer under Recovery Certificate No. 7544 of 2024, under Attachment Proceeding No. 15861 of 2026 (addressed to all banks and post offices) and No. 15862 of 2026 (addressed to NSDL, CDSL and all mutual funds in India). Per the notices, "no amount has been paid by the Defaulters" and there is "sufficient reason to believe" they may dispose of assets, delaying recovery.

The sum being recovered has three parts, according to the notices: Rs 54,27,341 that SEBI's whole-time member directed the two to refund in an order dated 22 February 2023, interest of Rs 6,51,281 for February 2023 to January 2024 at 1% a month, and Rs 1,000 in recovery costs. The liability is joint and several, so SEBI can recover the full amount from either person.

The underlying matter is titled "Unregistered Investment Advisory". SEBI decided it ex parte in 2023 after, according to the order, neither person replied to the show-cause notice or appeared at the hearing. Neither has publicly responded to the October 2026 attachment notices.

How the Scheme Worked

According to SEBI's February 2023 order, the matter began with an investor complaint dated 29 June 2020, which alleged that "Wisdom Capital Group" had cheated the complainant in the name of securities-market investment. SEBI examined the matter and issued a show-cause notice on 8 October 2021.

The order describes the website www.wisdomcapitalgroup.com, by then no longer functional, from archived copies of its pages. It presented itself as "an investment advisory company" giving recommendations on stocks, futures and options, commodities and forex. It sold paid packages with names such as Basic Stock Cash, HNI Stock Option, Index Future, BTST and Premium Stock Option. The order records sample prices of Rs 8,500 a month, Rs 18,000 a quarter, Rs 28,000 a half-year and Rs 46,000 a year for its basic stock packages. The site, the order notes, promised "more than 90% assurance in our recommendations".

Clients were asked to pay into a Paytm Payments Bank account displayed on the site under the name "M/s. Wisdom Capital", or through Paytm, PhonePe and GPay. SEBI found from the bank's KYC records that this account belonged to Rajesh Nath. It was opened on 22 December 2019, and, per the order, received credits of Rs 54,27,341 by June 2020, which SEBI concluded were fees from clients for advisory services.

The order traces how the money moved. Funds from that account were transferred, directly or indirectly, to five bank accounts at IndusInd Bank, Axis Bank and SBI which, per the order, belonged to Shubham Rai. The show-cause notice put total credits into those five accounts at Rs 99,86,700.78. SEBI took only the Rs 54,27,341 received in the account named on the website as proven advisory fees, while noting it "cannot be ruled out" that more money was collected elsewhere.

The order also records that a registered stock broker, Wisdom Capital Advisors Private Limited of Noida, had complained to Uttar Pradesh police in 2020 that the website was "strikingly similar" to its own name and used its SEBI registration number. SEBI said these allegations of a criminal offence fall within the domain of law enforcement agencies, and decided only the unregistered advisory question. The broker is not a party to the SEBI order.

The procedural chain since then, as the documents record it: show-cause notice (October 2021), newspaper publication after postal service failed (February 2022), hearing notice (July 2022), final order (22 February 2023), Recovery Certificate and Notice of Demand (25 January 2024), and now attachment (29 October 2026).

The Law Invoked

SEBI found that the two violated Section 12(1) of the SEBI Act, 1992, read with Regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013. Section 12(1) bars intermediaries, including investment advisers, from dealing in securities without a SEBI certificate of registration. Regulation 3(1) says no person may act as, or hold themselves out as, an investment adviser without registration. The order applied the definitions of "investment adviser" in Regulation 2(m) and "investment advice" in Regulation 2(l), and noted that the two were never registered with SEBI in any capacity.

The directions were issued under Sections 11(1), 11(4) and 11B(1), read with Section 19, of the SEBI Act. These give SEBI its general power to protect investors and to issue directions, including refunds and market bans.

The attachment notices are issued under Section 28A(1) and Section 11(2)(ia) of the SEBI Act, read with Section 416 of the Income-tax Act, 2025 and Rule 225 of the Income-tax Rules, 2026. Section 28A lets SEBI recover unpaid amounts using the same machinery the tax department uses to recover tax arrears, including attaching bank accounts and securities.

What Happens Next

The notices order banks, post offices, depositories and mutual funds to attach every account and folio held by the two, singly or jointly, and to allow "No Debit" up to the total dues until further orders from SEBI's Recovery Officer. Credits may continue. Banks must report account details, a year of statements and any loans within 15 days, and must also attach any new account the two open later.

If funds are found, SEBI can direct that they be paid over towards the dues. If the attached balances fall short, the recovery machinery allows further steps such as attaching and selling movable or immovable property. The 2023 order said any money left after refunds to clients was to be held in an escrow account for a year for distribution to clients and then moved to SEBI's Investor Protection and Education Fund.

Separately, the 2023 order debarred both from the securities market until three years after they complete the refund. Because no refund has been made, according to the recovery notices, that clock has not started. SEBI orders can be appealed to the Securities Appellate Tribunal; the recovery documents do not mention any appeal.

What It Means

For readers, the main lesson is how ordinary the set-up looked. A website with a name close to a real, registered broker, tiered "packages" priced like a subscription, a promise of 90% accuracy and payment through popular UPI apps into a personal-looking account: SEBI's order describes each of these features. None of them is proof of a registered adviser.

Before paying anyone for stock tips, check the SEBI registration number on SEBI's own website under "Recognised Intermediaries", and confirm the name, registration number and contact details match exactly. Registered investment advisers must collect fees only through the channels SEBI permits, and no registered adviser is allowed to guarantee returns or accuracy. A payee name that differs from the firm's registered name is a reason to stop.

For clients who paid this website, the practical point is that recovery is slow. More than three and a half years after the refund order, SEBI's own notices say nothing has been paid. Attachment improves the chance of recovery, but the 2023 order also preserves clients' right to pursue other legal remedies, such as consumer forums or a police complaint.

FAQ

What exactly did SEBI order on 29 October 2026?

SEBI's Recovery Officer ordered all banks, post offices, NSDL, CDSL and all mutual funds to attach accounts, lockers, demat holdings and folios of Rajesh Nath and Shubham Rai, and to block debits up to the dues. This enforces Recovery Certificate No. 7544 of 2024 for Rs 60,79,622, which covers a refund directed in 2023 plus interest and costs.

Is this a criminal conviction?

SEBI's 2023 order is a regulatory finding, made ex parte, that the two acted as unregistered investment advisers. It is not a criminal conviction. The broker's separate impersonation complaint to police contains allegations, not findings of guilt; the accused are presumed innocent until proven guilty, and due process continues. SEBI orders can be challenged before the Securities Appellate Tribunal.

Is the registered broker Wisdom Capital involved?

No. According to SEBI's order, Wisdom Capital Advisors Private Limited, a Noida stock broker, was the party that complained that the website copied its name and SEBI registration number. The SEBI order and the attachment notices are directed only at Rajesh Nath and Shubham Rai.

How can I check if an investment adviser is registered?

Search the adviser's name or registration number in the "Recognised Intermediaries" list on sebi.gov.in. Match the name, registration number, address and the account that fees are paid into. Be cautious if a site guarantees accuracy, takes fees into a personal account, or gives only a phone number or messaging app as contact.

What should clients who paid this website do?

Keep payment records and any messages. The 2023 order required a public refund notice and a claims process, and SEBI's notices show the refund has not been made. Clients may contact SEBI through its SCORES complaints portal and remain free to pursue other remedies, including a consumer forum or police complaint.

This report is based on the official SEBI notice of attachment dated 29 October 2026 and the SEBI order dated 22 February 2023, both published by SEBI.