Investographer1 operates an illicit advice and promotes a brand using MS Dhoni's likeness

 Investographer1 operates an illicit advice and promotes a brand using MS Dhoni's likeness

It offers advice services via a paid group and social media accounts without requiring SEBI registration.

The claim made by powerful individuals that these investment ideas are being disseminated for educational reasons may not have much weight in light of how SEBI has decided situations of this kind.

Unknowingly, cricket player Mahendra Singh Dhoni has been entangled in an illicit market advising business. The plan involves bankers Ankit Jain and Srijan Sadanand Gaurkar using the iconic status of the famous Captain Cool to provide investment advice.

With around 7 lakh followers, Jain and Gaurkar run Investographer1, a well-known social media account that offers advice on everything from trading to investing.

At a gathering for content creators, the two founders of Investographer EdTech posed for a picture with Dhoni. They are using the picture to advertise Mastering Technical Analysis, one of their services, and their partnership with Dhoni. via their brand's legitimacy.

Dhoni, like a lot of other famous people, has suffered from many businesses abusing his reputation. He appeared on the cover of Business Today in 2013 as Lord Vishnu in connection with their branding partnerships. Due to the controversy surrounding this representation, Dhoni is now being sued in Andhra Pradesh and Karnataka for allegedly offending religious feelings. Due to these accusations, criminal procedures were initiated, and after three years, the Supreme Court had to step in to provide Dhoni with relief.

But his relief did not last long. He was the brand ambassador for the real estate developer Amrapali Group, and he quickly found himself involved in a fresh legal dispute with them. Disgruntled purchasers tagged Dhoni in their social media postings to show their dismay after the struggling realtor failed to deliver the property on schedule. He sued the corporation for unpaid debts of Rs 150 crore after resigning from his position as brand ambassador. The arbitration procedures between Dhoni and the realtor were suspended by the Supreme Court in 2019, stating that the interests of house purchasers should take precedence.

gray region in regulations

Technically adept investors operate in a regulatory murky area. For a price, it provides tried-and-true trading methods. Legal experts claim that these tactics may be considered investing advice if they are unique to stocks and are being used by course participants in the actual market. Anand Kankani, a company secretary and securities law specialist, claims that this would be against the Investment advisors (IA) Regulations since they are not SEBI-registered investment advisors.

Investographer has been contacted by Moneycontrol; the story will be updated upon receiving a response.

They provide guidance using a number of platforms, such as YouTube and a membership club. After we were approached by Moneycontrol for comment, several of the postings were taken down.

Moneycontrol was informed by the content-creator platform Rigi, which coordinated the event at which the founders of Investographer took a picture with Dhoni, that neither Dhoni nor the platform support Investographer's offerings. Dhoni has stock in Rigi.

Legal experts informed Moneycontrol that because Dhoni is only an investor on a site that offers a service and does not provide investment advice, he cannot be held accountable for recommending the services of an investographer.

A representative for Rigi said in an email in response to Moneycontrol's inquiries, "Any picture clicked here does not imply that MS Dhoni or Rigi is endorsing anyone."

unlawful counsel

Investographer1 is a popular YouTuber with over 6.89 lakh followers. He has a playlist called Trade and Investment Ideas.

Some of these videos qualify as investment advice and breach IA requirements since they will monetize the advertising money produced from the channel, which is also investment advice, according to Anand Kankani, a consultant to research analysts and investment advisers. Possess an idea.

Many of these films, according to Kankani, may also be seen as research reports, particularly if they provide buy, sell, or hold recommendations. As a result, anybody who releases such information would have to register with SEBI as a research analyst. will need registration.

The Investographer team's largest transgression, however, is evident in its premium group, Big Bulls Club, which provides "Investment Ideas and Updates," "Swing Trade Ideas (with SL and Targets)," and "Exclusive Live Market Sessions." gives "much more" as well.

After "discounts," the club charges a steep sum of Rs 12,000 for a half-yearly membership and Rs 21,000 for an annual membership. A disclaimer reads, "Not SEBI registered; consult your financial advisor," on its advertising materials. Benefits and features are subject to modification at any moment at the administrator's discretion.

According to SEBI's June 14, 2023, interim ex-parte ruling, this disclaimer won't be much of a defense. Unregistered investment advice is among them.