Description

SEBI issues enquiry order against Research Analyst Nikhil Dayanand Baljekar (INH000009001) for failing to cooperate during inspection and allowing third parties to misuse his license.

Summary

SEBI has issued an enquiry order against Research Analyst Nikhil Dayanand Baljekar (Registration No. INH000009001, PAN: ABYPB7880N) for serious regulatory violations during the inspection period from April 1, 2022 to January 31, 2024. The order addresses non-cooperation during inspection and allowing third parties to misuse his SEBI registration.

Key Points

  • Research Analyst failed to provide requested information and documents during SEBI inspection
  • Did not respond to inspection findings communicated on March 20, 2024
  • Allowed third parties to use his SEBI registration for Investment Adviser (IA) and Research Analyst (RA) licenses
  • Shared client details with unauthorized third parties
  • Permitted third parties to give investment recommendations under his name
  • Outsourced core activities and engaged in mis-selling of research services
  • Show-cause notice issued on June 10, 2024 under Section 12(3) of SEBI Act, 1992

Regulatory Changes

No new regulatory changes introduced. This order reinforces existing compliance requirements under SEBI (Research Analyst) Regulations, 2014 and related provisions.

Compliance Requirements

  • Research Analysts must fully cooperate during SEBI inspections
  • Mandatory provision of all requested documents and information
  • Prohibition on allowing third parties to use SEBI registration
  • Restriction on sharing client details with unauthorized entities
  • Core activities cannot be outsourced to third parties
  • Personal responsibility for all recommendations issued under registration

Important Dates

  • Inspection Period: April 1, 2022 to January 31, 2024
  • Inspection findings communicated: March 20, 2024
  • Show-cause notice issued: June 10, 2024
  • Order date: September 1, 2025

Impact Assessment

This enforcement action demonstrates SEBI’s commitment to maintaining integrity in the research analyst ecosystem. The violations involving license misuse and third-party operations pose risks to investor protection and market credibility. Other research analysts should review their operational practices to ensure full compliance with regulatory requirements and avoid similar violations.

Impact Justification

Individual research analyst violation with potential systemic implications for regulatory compliance