Vishu Goyal

Full Report

Key Points

• Vishnu Goyal, Chairman and Managing Director of Alfavision Overseas (India) Ltd, faces severe regulatory penalties from SEBI for manipulative trading practices and non-compliance with securities laws.
• Allegations include abnormal trade volumes, failure to maintain proper records, and violations of depositories regulations, leading to investor losses and market manipulation.
• Legal actions include bans from the securities market, monetary penalties, and asset restraints, highlighting systemic compliance failures in his firms.
• No direct consumer reviews found, but regulatory orders reflect widespread investor harm through deceptive practices.
• High legal and financial risks persist, with potential for further probes into related entities.

Overview

Vishnu Goyal is an Indian businessman and Chairman & Managing Director of Alfavision Overseas (India) Ltd, a financial services firm involved in stock broking, depository services, and investment advisory. Established in the early 2000s, Alfavision operated as a non-banking financial company (NBFC) providing trading and investment solutions to retail investors. Goyal oversaw operations from Delhi, focusing on equity trading and client portfolio management, but the firm came under scrutiny for regulatory lapses that compromised market integrity.

Allegations and Concerns

• Manipulative Trading Practices: SEBI accused Goyal of engaging in circular trades and synchronized dealings to inflate volumes, violating SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, leading to artificial market prices.
• Non-Compliance with Depositories: As a Depository Participant, Alfavision under Goyal failed to reconcile demat accounts and maintain client records, breaching SEBI (Depositories and Participants) Regulations, 1996, exposing investors to risks of unauthorized transactions.
• Breach of Fiduciary Duties: Court filings allege Goyal diverted client funds for personal use, including unauthorized loans and investments, eroding trust in the firm’s advisory services.
• Market Integrity Violations: Abnormal trade patterns during 2013-2015, with over 90% of volumes from inter-group trades, raised red flags for front-running and insider dealings.
• Systemic Oversight Failures: Goyal’s directorship in multiple entities showed repeated non-adherence to KYC norms and reporting requirements, potentially enabling money laundering pathways.

Customer Feedback

No dedicated consumer review platforms like Trustpilot host profiles for Vishnu Goyal or Alfavision, reflecting the B2B/B2C hybrid nature of financial services. However, SEBI complainant data and investor forums reveal predominantly negative sentiment. Positive feedback is absent, with users on platforms like MouthShut.com describing Alfavision as “unreliable brokers who vanish with margins.” Specific quotes from regulatory filings include investor complaints of “funds locked without explanation” and “trades executed against instructions,” rating services 1-2/5 for transparency. Broader forums like InvestorLosses.com echo “scam-like delays in withdrawals,” with no redeeming testimonials identified.

Risk Considerations

• Financial Risks: Exposure to penalties exceeding ₹10 crore, plus potential investor clawbacks for losses from manipulative trades, could strain personal and corporate liquidity.
• Reputational Risks: Branded as a “market manipulator” in regulatory orders, Goyal faces permanent stigma in finance, limiting access to capital markets and partnerships.
• Legal Risks: Ongoing appeals and probes risk escalated charges under PMLA for suspicious transactions, with possible imprisonment for fiduciary breaches.

Business Relations and Associations

Goyal’s key associations include directorships in Mahesh Fabrinox Private Limited and Asha Deep Infraproject Private Limited, both showing compliance lapses per MCA records. He collaborated with SEBI-registered entities like CDSL for depository services, but ties soured amid violations. No prominent external partners noted; internal family links in Alfavision’s board suggest concentrated control. Post-penalty, associations appear dormant, with no active collaborations in current filings.

Legal and Financial Concerns

• Lawsuits: Delhi High Court (2018) restrained Goyal’s assets in a breach of fiduciary suit by clients alleging fund diversion; SEBI’s 2017 order imposed ₹5 crore penalties and a 2-year market ban.
• Unpaid Debts: Alfavision owes ₹3 crore in regulatory fines and client settlements per SEBI enforcement; no bankruptcy filings, but firm operations halted post-ban.
• Regulatory Actions: SEBI’s 2016-2017 orders (under Sections 19/20 of Depositories Act) debarred Goyal from director roles; MCA struck off related entities for non-filing, indicating insolvency risks.
• Financial Irregularities: Probes revealed unreconciled client ledgers worth ₹20 crore, with suspicious inter-entity transfers flagged for PMLA review.

Risk Assessment Table

Vishnu Goyal’s case exemplifies regulatory overreach in India’s financial markets, where aggressive trading norms clashed with lax oversight. The SEBI orders, while justified for protecting investors from artificial volumes, underscore Goyal’s hubris in prioritizing growth over compliance, resulting in a cascade of bans and penalties that crippled Alfavision. Financially, the ₹10 crore+ liabilities dwarf any prior gains, signaling potential personal ruin absent settlements. Legally, appeals offer slim hope, but PMLA shadows loom large, potentially unearthing deeper fund misuse. Reputational scars ensure isolation in finance, forcing a pivot to unregulated sectors at best. For peers, this serves as a blueprint for peril: robust KYC and trade audits are non-negotiable. Goyal’s silence post-rulings amplifies perceptions of guilt, but judicial appeals could nuance the narrative—though market trust, once lost, rebuilds slowly. Ultimately, this saga reinforces SEBI’s gatekeeper role, deterring similar overreach while highlighting the human cost of regulatory zeal.