Description

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

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 violations of SEBI Act, Research Analysts Regulations, PFUTP Regulations, and Investment Advisers Regulations during the inspection 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 multiple SEBI regulations including Research Analysts Regulations 2014 and Investment Advisers Regulations 2013
  • Show Cause Notice issued on January 31, 2025
  • Noticees submitted reply on February 28, 2025 denying acting as Investment Adviser
  • Matter involves holding out as SEBI registered Investment Adviser without compliance

Regulatory Changes

No new regulatory changes announced - this is an enforcement action under existing regulations.

Compliance Requirements

  • Research Analysts must strictly comply with SEBI (Research Analysts) Regulations, 2014
  • Cannot hold out or act as Investment Adviser without proper registration and compliance
  • Must maintain clear distinction between research analyst and investment adviser activities
  • Proper disclosure and compliance with PFUTP Regulations required

Important Dates

  • Inspection Period: April 1, 2020 to November 25, 2021
  • Adjudication Proceedings Approved: October 10, 2022
  • Show Cause Notice Issued: January 31, 2025
  • Noticees’ Reply Submitted: February 28, 2025

Impact Assessment

This enforcement action serves as a reminder to research analysts about strict compliance requirements and the consequences of regulatory violations. It reinforces SEBI’s commitment to maintaining market integrity and protecting investor interests through proper oversight of research analysts and investment advisers.

Impact Justification

Regulatory enforcement action against research analyst for compliance violations - important for industry participants to understand regulatory requirements