The (SEBI) has uncovered a case where a stock broking licence was allegedly used as a front to run a Ponzi-like scheme promising assured monthly returns of 10–12 per cent; the regulator has imposed a ₹1 crore penalty on Trdez Investment Pvt Ltd.
The regulator said the broker was part of a wider network of entities including Infinite Beacon, IB Prop Desk and Sispay TFS, that together mobilised over ₹2,950 crore from investors by misrepresenting their association with a SEBI-registered intermediary.
According to the order, agents used the broker’s registration to build credibility, luring investors with promises of high fixed returns. Funds were routed through multiple entities with common directors, addresses and financial linkages, while investors were shown dashboards reflecting fictitious gains and allowed limited withdrawals initially to build trust.
SEBI found that the funds were collected through multiple bank accounts, and investors were provided with dashboards showing fictitious profits. “Directors of Noticee along with certain connected persons had created several partnership firms that had mobilised money from the public… and despite receiving multiple complaints… it failed to take any meaningful action,” the order said.
In many cases, withdrawals were later blocked, and funds were allegedly diverted or converted into cryptocurrency without the consent of the account holder. Despite receiving numerous complaints alleging impersonation and misuse of its name, Trdez Investment did not take effective action.
SEBI said the company’s response was limited to generic press releases and disclaimers that did not even mention the entities involved in the alleged fraud, and no meaningful legal or regulatory steps were taken to stop the misuse of its registration.
The regulator also said that Trdez itself had negligible genuine operations, executing trades of just ₹43,430 in its proprietary account and “not even a single client trade” since inception.
This led SEBI to conclude that the licence was effectively misused. It observed that the registration “appears to be used as a pivot to enter into an illegal money mobilising scheme… and provide pseudo-legitimacy” to the activities of associated entities. The adjudicating officer said that by failing to prevent misuse of its name, the entity had “compromised the integrity, promptitude and fairness expected of a registered intermediary”.
Further, the order held that the broker’s inaction despite repeated complaints reflected a “significant lapse in due skill, care and diligence”, and that its close association with the entities indicated it had “facilitated such activities”. It said the conduct rendered the entity not ‘fit and proper’, adding that “the criteria of integrity, honesty, ethical behaviour, reputation, fairness and character stand adversely affected” when an intermediary is linked to fraudulent activities.
The order concluded that Trdez had violated multiple provisions of the stock broker code of conduct and was liable for penalty under the SEBI Act.