Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 1 crore on brokerage firm Trdez Investment Pvt Ltd after finding that its licence was allegedly used to facilitate a Rs 2,950 crore investment scheme that bore the hallmarks of a Ponzi structure.

In an order dated April 9, SEBI said Trdez Investment failed to prevent the misuse of its stockbroking registration by a network of associated entities that mobilised funds from investors by promising fixed monthly returns of 10-12%.

The regulator said entities such as Infinite Beacon, IB Prop Desk and Sispay TFS raised funds while presenting themselves as being associated with the SEBI-registered broker, lending credibility to the scheme.

SEBI had granted stockbroker registration to Trdez Investment in April 2023. The order notes that around this period, certain entities, including Infinite Beacon, began mobilising funds while presenting themselves as being associated with a SEBI-registered intermediary.

The order said that SEBI had received an RTI application dated Dec. 12, 2024, seeking information on the connection between the Trdez Investment and the entity Infinite Beacon, as well as details of a complaint filed on SEBI’s SCORES platform.

The complaint referenced a video posted by a YouTuber described in the order as a “digital blogger,” alleging irregularities in the operations of the entities.

Separately, SEBI said it received complaints from investors, including one by Aseem Juneja, who alleged that a Ponzi scheme was being run under the name Infinite Beacon in and around Pune.

These and other complaints formed the basis for further examination by the regulator.

Based on its findings, SEBI issued a show-cause notice on Jan. 7, 2026, alleging that the broker had failed to exercise due diligence and allowed misuse of its registration.

Trdez Investment did not respond to the allegations or appear for hearings, following which the adjudicating officer proceeded ex parte, the order said.

Notably, a key finding in the order was the overlap between the brokerage’s directors and the entities involved. Several of the directors were associated with such entities, including at senior levels.

The order said that some of these individuals later resigned from the partnership firms after complaints had surfaced, but said such resignations did not negate their involvement during the period when funds were being mobilised.

SEBI concluded that the broker violated provisions of the stock broker code of conduct, including failing to act with integrity, due skill and care, and in the interest of investors.

The order also noted that the broker had minimal trading activity since registration, with no client trades executed.

India has seen several similar instances of Ponzi schemes, often backed by promises of fixed returns. Such cases include Saradha Group and Rose Valley, and PACL Ltd’s land investment schemes that impacted retail investors.