Description

SEBI issues disciplinary order against Research Analyst Parag Salot (Registration No. INH000000115) for mis-selling services, fraudulent fund collection, and multiple compliance violations.

Summary

SEBI has issued a disciplinary order under Section 12(3) of the SEBI Act, 1992 against Research Analyst Parag Salot (PAN: APEPS7000R, Registration No. INH000000115) following an inspection covering April 1, 2022 to February 29, 2024. The order addresses serious violations including fraudulent fund collection, mis-selling of services, and multiple compliance breaches under the Research Analyst Regulations and PFUTP Regulations.

Key Points

  • Research Analyst Parag Salot registered with SEBI since March 2, 2015
  • Inspection period: April 1, 2022 to February 29, 2024
  • Multiple violations of SEBI Act, Research Analyst Regulations, and PFUTP Regulations identified
  • Issues include fraudulent practices, assured return claims, and regulatory non-compliance
  • Complaint filed by client Mr. Pramod Kumar Mishra mentioned in proceedings
  • Failed to maintain proper records and conduct required annual audits

Regulatory Changes

No new regulatory changes introduced - this is an enforcement action against existing regulations.

Compliance Requirements

  • Research Analysts must maintain proper records of recommendations provided to clients
  • Annual audits must be conducted as required by regulations
  • SEBI must be informed of office address changes
  • Complete and accurate information must be provided regarding offices where RA activities are conducted
  • Proper disclosures required in advertisements including RA name, registered office address, and SEBI registration number
  • Investor charter and complaint details must be displayed on websites
  • Valid NISM certification required for RA activities
  • Due diligence must be exercised in maintaining email records for RA activities

Important Dates

  • Inspection findings communicated: March 18, 2024
  • Noticee reply submitted: March 25, 2024
  • Original registration date: March 2, 2015
  • Inspection period: April 1, 2022 to February 29, 2024

Impact Assessment

This enforcement action serves as a warning to all Research Analysts about strict compliance requirements and consequences of fraudulent practices. While limited to one intermediary, it reinforces SEBI’s commitment to investor protection and maintaining market integrity through proper oversight of research analyst activities.

Impact Justification

High importance due to regulatory disciplinary action and multiple serious violations; medium impact as affects one research analyst rather than market-wide changes