The case involves Purooskhan, registered as a research analyst with SEBI since 2018. During an investigation, SEBI found that his registration number appeared on a website that offered illegal investment advisory services, misleading investors into believing the platform was SEBI-certified.
SEBI received investor complaints in 2022 and 2023 against the website optionresearch.in.
The complaints alleged that the platform promised guaranteed returns and charged fees for investment advice, which is prohibited under securities laws.
SEBI’s examination revealed that the website was operated by a partnership firm, Option Research Consultancy (ORC), which was not registered with the regulator. Investors paid fees for advisory packages to bank accounts linked to ORC and its associates.
Several complainants reported heavy losses after following the advice provided through the platform.
Following the probe, SEBI took enforcement action against ORC and its partners for acting as unregistered investment advisers and for fraudulently using SEBI credentials.
In an order dated August 27, 2024, SEBI directed them to refund more than ₹ 30.39 lakh to investors, barred them from the securities market for two years, and imposed penalties of ₹6 lakh on each partner.
SEBI also initiated separate proceedings against Purooskhan. While the adjudication found no clear evidence of deliberate collusion, financial gain, or active involvement in ORC’s business, the regulator raised serious concerns about his conduct as a registered intermediary.
During the proceedings, Purooskhan admitted that he shared the password of the email account linked to his SEBI registration with one of ORC’s partners. SEBI said this amounted to serious negligence and weakened regulatory safeguards meant to protect investors.
In September, SEBI issued a show-cause notice proposing the cancellation of his registration. At a later hearing, Purooskhan told the regulator that he was no longer working as a research analyst and agreed to the cancellation of his licence.
Considering the findings and his own submissions, SEBI cancelled Purooskhan’s research analyst registration under the SEBI Act and the Intermediaries Regulations, citing investor protection and market integrity as key reasons.
