SEBI Crackdown on Fake Investment Promises: The ₹30,000 to ₹24 Lakh Illusion Every Investor Must Know

Introduction

Imagine being told that with just ₹30,000, you could generate a daily turnover of ₹24 lakh. Within three months, your turnover would touch ₹15 crore. Sounds like the dream every investor secretly wishes for, doesn’t it?

This was the pitch made by Shilpa Garg, a registered investment advisor, to a retail investor. But dreams quickly turned into nightmares, exposing the darker side of financial mis-selling. The case has now become a striking example of a SEBI crackdown on fake investment promises, reminding us why vigilance is the first line of defense in the stock market.

The Unbelievable Promise

It all began with a simple yet grand assurance. In recorded calls, Garg confidently told the investor:

“If you invest ₹30,000, your daily turnover will be ₹24 lakh. In 10 days, it will reach ₹2.4 crore. In one month, ₹5 crore. And in three months, close to ₹15 crore.”

To make it sound more credible, she spoke of “supreme services,” “momentum calls with surety,” and even claimed 80–90% accuracy in her advice.

For someone hoping to make quick profits, this was irresistible. And that’s exactly how scams work—they sell you hope, not reality.

The Money Trail

The investor, convinced by her words, began transferring money to her firm Highlight Investment Research. Between November and December 2019, payments totaling ₹1.18 lakh were made.

But that was only the beginning. Over time, the firm collected a fee of ₹1.56 lakh plus 28% GST (₹1.75 lakh total). The commitment? A return of ₹5 lakh within four months.

Initially, there was a small profit of just ₹5,200. But soon after, the investor’s demat account suffered a loss of ₹50,000.

When the losses piled up, Garg and her firm allegedly switched off their phones and became unreachable. The promises had vanished into thin air, leaving the investor frustrated and helpless.

This is the kind of real-life case that justifies a SEBI crackdown on fake investment promises—because without strong regulation, many more small investors could fall prey to such tactics.

The Complaint and SEBI’s Probe

On January 28, 2022, the investor decided enough was enough and filed a complaint on SEBI’s SCORES platform (Securities and Exchange Board of India’s official grievance redressal system).

The allegations were clear:

• Fees were collected with promises of guaranteed profit.
• Instead of gains, losses occurred.
• After the losses, the advisor stopped communicating.
• Refunds were denied.

SEBI opened a probe into Highlight Investment Research and its owner, Shilpa Garg. The findings were damning:

• Assured returns had been promised (strictly against regulations).
• Investor grievances were ignored.
• The firm had not obtained mandatory membership with BSE Administration and Supervision Limited (BASL).

When SEBI issued a Show Cause Notice (SCN) asking Garg to explain her conduct, she did not respond. Her silence was taken as unwillingness to cooperate.

SEBI’s Strong Action

Finally, in September 2025, SEBI issued a 16-page order. The conclusions were blunt:

• Garg had misrepresented facts to induce the investor.
• She indulged in mis-selling for advisory fees.
• Her conduct was classified as an act of fraud.

The penalty was equally strong:

1. Cancellation of Highlight Investment Research’s registration certificate.
2. Ban on Shilpa Garg from holding herself out as a SEBI-registered investment advisor.
3. Direction to publicly disclose the cancellation on her firm’s website.

This was not just a punishment for one advisor but a clear SEBI crackdown on fake investment promises across the board.

The Red Flags Investors Missed

Looking back, there were enough warning signs that could have helped the investor avoid this trap:

1. Guaranteed returns – No genuine advisor can promise profits in stock markets.
2. Exaggerated numbers – Turning ₹30,000 into crores in weeks is mathematically absurd.
3. High fees upfront – Collecting ₹1.75 lakh as fees for a ₹30,000 investment makes no sense.
4. Disappearing act – Advisors who go silent after losses are never trustworthy.
5. Regulatory gaps – No BASL membership, yet operating as a full-fledged advisory service.

But greed often overshadows logic. And that’s exactly why the SEBI crackdown on fake investment promises becomes so vital—it protects investors from their own blind spots.

Why This Crackdown Matters

The significance of this case lies beyond one advisor’s misconduct. It highlights how fraudulent financial advisors exploit retail investors’ lack of awareness.

SEBI’s intervention shows that:

• The regulator is actively monitoring complaints via SCORES.
• Mis-selling will not be tolerated.
• Unresponsive advisors will face strict action.

The SEBI crackdown on fake investment promises also serves as a deterrent to other unscrupulous advisors who may think they can get away with unrealistic guarantees.

Lessons Every Investor Must Learn

From this saga, retail investors can draw some timeless lessons:

• If it sounds too good to be true, it probably is.
• Never fall for guaranteed returns—the stock market has risks.
• Verify advisor credentials on SEBI’s official website.
• Check BASL membership before trusting any advisory firm.
• Keep all proof—payments, calls, and emails—for future reference.
• Report early through SEBI SCORES if something feels wrong.

Most importantly, remember that genuine wealth building in the stock market is a long-term process, not a quick jackpot.

The Bigger Picture: Investor Awareness

The Shilpa Garg episode is not an isolated incident. Across India, hundreds of small investors are lured daily by WhatsApp tips, Telegram groups, and self-proclaimed “market gurus.”

They all sell the same dream: quick money with no risk. And they all end the same way—with losses and vanished advisors.

That’s why SEBI is doubling down. Every SEBI crackdown on fake investment promises not only protects one victim but sends a loud message across the market: beware of shortcuts.

Conclusion

The tale of ₹30,000 turning into ₹24 lakh a day is a perfect example of how greed and unrealistic promises can trap investors. Shilpa Garg’s downfall is a reminder that fraud wears the mask of opportunity.

By cancelling her registration and banning her, SEBI has shown that it will not allow such practices to continue unchecked.

But regulation alone cannot protect every investor. The responsibility also lies with individuals to question, verify, and think twice before trusting anyone who offers sky-high returns.

At the end of the day, the stock market rewards patience and knowledge, not shortcuts. And the next time you hear a promise that sounds too good to be true, remember this story and the phrase that defines it all:

👉 SEBI crackdown on fake investment promises.

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