In a surprising turn of events, the Securities and Exchange Board of India (SEBI) has revoked the registration of an individual listed as a research analyst who was, in reality, operating a small grocery shop in Madurai. The person, identified as Purooskhan, was found to have no involvement in the securities market during SEBI’s investigation.
During the hearing conducted by SEBI’s quasi-judicial authority Santosh Kumar Shukla, it was revealed that Purooskhan managed a modest 100-square-feet provision store selling daily essentials and snacks, rather than conducting market research or offering investment advice. Expressing astonishment, Shukla questioned how such an individual could have obtained registration as a research analyst.
SEBI’s decision to cancel Purooskhan’s research analyst registration stemmed from his lack of familiarity with securities market activities, as confirmed during the virtual hearing where he clarified his involvement in a small business and disavowed any research analyst responsibilities. The case originated in June 2022 following a complaint lodged on SEBI’s SCORES platform against a website named optionresearch.in.
Upon investigation, SEBI discovered that the website, which made enticing promises of “sure shot” trading calls and risk-free investments leading to doubled money, was not only misleading investors but also falsely portraying itself as a SEBI-registered entity. Purooskhan, whose SEBI registration number was prominently displayed on the website, distanced himself from its operations, claiming his registration details were misused.
