Description

SEBI issues final order against Research Analyst Priyanka Yadav for multiple regulatory violations including association with debarred person.

Summary

SEBI has issued a final order against Priyanka Yadav, Proprietor of Trade Money Research (Registration No. INH000010991), following an onsite inspection conducted on October 8-9, 2024. The order addresses multiple violations of Research Analyst Regulations including association with a SEBI-debarred person and operational irregularities.

Key Points

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

Regulatory Changes

No new regulatory changes introduced. Order enforces existing Research Analyst Regulations, 2014 provisions.

Compliance Requirements

  • Research Analysts must ensure activities are conducted only by registered/authorized persons
  • Maintain fit and proper criteria throughout registration period
  • Inform SEBI/RAASB of any change in operational address
  • Disclose material information including operational control to clients
  • Conduct mandatory annual audits by qualified professionals
  • Maintain proper investor grievance mechanism and website updates

Important Dates

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

Impact Assessment

Direct impact limited to specific research analyst entity. Reinforces SEBI’s strict enforcement of Research Analyst regulations, particularly regarding association with debarred persons and operational transparency. Serves as precedent for compliance standards expected from registered research analysts.

Impact Justification

Enforcement action against specific research analyst, limited broader market impact but important for compliance standards