Description

SEBI imposes penalties on Eqwires Research Analyst and its partners for violations of Research Analyst and Investment Adviser regulations during 2020-2021.

Summary

SEBI has issued an adjudication order against Eqwires Research Analyst (Registration No. INH000007465) and its partners Bansri Pankajbhai Thakkar and Pranay Dineshbhai Morakhiya for multiple regulatory violations. The violations were identified during an inspection covering the period from April 1, 2020 to November 25, 2021.

Key Points

  • SEBI conducted inspection of Eqwires Research Analyst at its registered office
  • Violations found under SEBI Act 1992, Research Analysts Regulations 2014, PFUTP Regulations 2003, and Investment Advisers Regulations 2013
  • Three entities involved: Eqwires Research Analyst and its two partners
  • Adjudication proceedings initiated on October 10, 2022
  • Show Cause Notice issued on January 31, 2025
  • Noticees submitted reply on February 28, 2025

Regulatory Changes

This order reinforces existing compliance requirements under:

  • SEBI (Research Analysts) Regulations, 2014
  • SEBI (Investment Advisers) Regulations, 2013
  • SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003

Compliance Requirements

  • Research analysts must comply with all provisions of RA Regulations
  • Cannot act as investment adviser without proper registration and compliance
  • Must maintain clear distinction between research analyst and investment adviser activities
  • Proper disclosure and compliance documentation required

Important Dates

  • Inspection Period: April 1, 2020 to November 25, 2021
  • Adjudication Proceedings Approved: October 10, 2022
  • Initial AO Appointment: August 18, 2023
  • Matter Reallocation: March 14, 2024
  • Final AO Appointment: November 22, 2024
  • Show Cause Notice: January 31, 2025
  • Noticee Reply: February 28, 2025

Impact Assessment

This enforcement action demonstrates SEBI’s continued focus on ensuring compliance by research analysts and investment advisers. The case highlights the importance of maintaining proper regulatory compliance and avoiding unauthorized activities. Market participants should review their own compliance frameworks to ensure adherence to applicable regulations.

Impact Justification

High importance due to regulatory enforcement action; medium impact as specific to one research analyst firm