Sebi, India’s securities regulator, has revoked the license of a registered research analyst after uncovering misuse of his credentials by an unregistered advisory firm.
Background
In June 2022, an investor complained that a website called optionresearch.in was promising "sure‑shot" trading calls and capital‑doubling schemes, while falsely claiming to be Sebi‑certified. The investor paid Rs 50,000 and later lost about Rs 4 lakh.
The site was using the registration number of Purooskhan, a research analyst who had been registered with Sebi since June 2018. Money collected from investors was sent to a partnership called Option Research Consultancy (ORC), which was not registered with Sebi.
Regulatory Action
- August 2024 – Sebi ordered ORC and its partners to refund more than Rs 30 crore, barred them from the securities market for two years, and fined each partner Rs 6 lakh.
- April 2025 – Sebi’s adjudicating officer gave Purooskhan the benefit of doubt on penalty grounds, noting no clear proof of collusion or monetary gain.
- September 2025 – A show‑cause notice was sent to Purooskhan for alleged security lapses after he shared his registered email password with someone linked to ORC.
- December 2025 – In a virtual hearing, Purooskhan admitted he was no longer active as an analyst, agreed to the cancellation, and the regulator formally revoked his registration.
Why It Matters to Investors
Using an unregistered advisory firm can expose investors to false promises, high fees, and substantial losses. The case highlights the importance of verifying the registration status of any advisory service before investing.
Implications for Analysts
Registered analysts must safeguard their credentials and communication channels. Sharing passwords or allowing others to use their registration numbers can lead to severe penalties, including licence cancellation.
Key Takeaways
- Always check if an advisory firm or analyst is registered with Sebi.
- Be wary of guarantees of “no‑risk” or “sure‑shot” returns.
- Report suspicious activities to Sebi’s SCORES platform.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research and consider seeking advice from a qualified professional before making any investment decisions.