Description

SEBI imposed penalties on research analyst Amit Guruh Sachdeva (Registration No. INH100005190) for violations including improper record maintenance and non-compliance with research analyst regulations.

Summary

SEBI issued an adjudication order against research analyst Amit Guruh Sachdeva (Registration No. INH100005190, PAN: BIJPS0406C) following violations identified during inspection for the period April 1, 2022 to February 29, 2024. The violations relate to improper maintenance of records, failure to comply with annual audit requirements, and non-adherence to research analyst regulations and code of conduct provisions.

Key Points

  • Research analyst Amit Guruh Sachdeva found in violation of SEBI Research Analyst Regulations
  • Inspection conducted on March 14-15, 2024 covering period from April 2022 to February 2024
  • Show Cause Notice issued on October 31, 2024
  • Violations include failure to maintain proper records and annual audit compliance
  • Multiple regulatory provisions breached including RA Regulations and SEBI circulars

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing SEBI Research Analyst Regulations, 2014 and related circulars from December 2021 and April 2023.

Compliance Requirements

  • Research analysts must maintain complete records including annual audit reports
  • Proper documentation of research reports with signatures and dates required
  • Client master records must be maintained for all clients
  • Research recommendations and rationale must be properly documented
  • Compliance with Code of Conduct as specified in Third Schedule of RA Regulations mandatory

Important Dates

  • Inspection Period: April 1, 2022 to February 29, 2024
  • Inspection Dates: March 14-15, 2024
  • Inspection Findings Communicated: June 27, 2024
  • Noticee Response: June 29, 2024
  • Show Cause Notice: October 31, 2024
  • Adjudicating Officer Appointment: May 2, 2025

Impact Assessment

This enforcement action has limited direct market impact as it targets an individual research analyst. However, it reinforces SEBI’s commitment to ensuring compliance with research analyst regulations and serves as a reminder to all registered research analysts about the importance of maintaining proper records and adhering to regulatory requirements. The action demonstrates ongoing regulatory oversight of research analyst activities and the consequences of non-compliance with established standards.

Impact Justification

Enforcement action against individual research analyst with limited market-wide impact but important for regulatory compliance standards