Description

SEBI issues final order against Research Analyst Priyanka Yadav for violations including association with debarred person and non-compliance with registration requirements.

Summary

SEBI has issued a final order against Priyanka Yadav, Proprietor of Trade Money Research (Registration No. INH000010991), following an onsite inspection conducted jointly with BSE on October 8-9, 2024. The order addresses multiple violations of SEBI Research Analyst Regulations, 2014, including operating through a SEBI-debarred person and failing to meet registration compliance requirements.

Key Points

  • Research Analyst activities were being conducted by Mr. Sandeep Yadav, a person debarred by SEBI from dealing in securities market
  • Violation of fit and proper criteria due to association with debarred person
  • Operating from Indore while registered address was in Nagpur, without proper intimation to SEBI/RAASB
  • Failed to disclose to clients that operations were run by a SEBI-debarred person
  • Non-compliance with annual audit requirements from ICAI/ICSI member
  • Failed to implement proper investor grievance mechanism and website updates

Regulatory Changes

This order reinforces existing Research Analyst regulations and emphasizes strict compliance with:

  • Section 12 of SEBI Act 1992 and Regulation 13 of RA Regulations
  • Regulations 6(vii), 6(x), 13(i), 13(ii), 19, and 25(3) of RA Regulations
  • SEBI Master Circular requirements for investor grievance mechanisms

Compliance Requirements

  • Research Analysts must ensure no association with SEBI-debarred persons
  • Maintain accurate registered address and inform SEBI of any changes
  • Conduct mandatory annual audits by qualified professionals
  • Implement proper investor grievance mechanisms
  • Maintain transparency with clients about operational arrangements
  • Ensure compliance with fit and proper criteria at all times

Important Dates

  • October 8-9, 2024: Onsite inspection conducted
  • May 20, 2025: Show Cause Notice issued
  • June 7, 2025: Reply filed by Noticee
  • June 27, 2025: First hearing scheduled (Noticee didn’t appear)
  • July 10, 2025: Second hearing conducted
  • July 29, 2025: Final order published

Impact Assessment

This enforcement action serves as a strong deterrent for Research Analysts engaging in regulatory violations. It emphasizes SEBI’s commitment to ensuring that debarred individuals cannot circumvent restrictions by operating through registered entities. The order reinforces the importance of maintaining proper compliance frameworks and transparent operations in the research analyst ecosystem.

Impact Justification

Regulatory enforcement action against research analyst for serious compliance violations