Description

SEBI enquiry order against Research Analyst Nikhil Dayanand Baljekar for non-cooperation during inspection and allowing third parties to use his license.

Summary

SEBI has issued an enquiry order against Research Analyst Nikhil Dayanand Baljekar (Registration No. INH000009001) for 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 use his SEBI registration.

Key Points

  • SEBI conducted inspection of Nikhil Dayanand Baljekar’s books from April 2022 to January 2024
  • Noticee failed to provide requested information during inspection despite reminders
  • Did not respond to inspection findings communicated on March 20, 2024
  • Allowed third parties to use his Research Analyst and Investment Adviser licenses
  • Shared client details with third parties and allowed them to give recommendations under his name
  • Outsourced core activities and engaged in mis-selling of research services

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing regulations.

Compliance Requirements

  • Research Analysts must cooperate fully during SEBI inspections
  • Must provide all requested information and documents promptly
  • Cannot allow third parties to use their SEBI registration
  • Cannot outsource core research analyst activities
  • Must maintain proper records and follow Code of Conduct

Important Dates

  • Inspection Period: April 1, 2022 to January 31, 2024
  • Reminder emails: February 28, 2024 and March 14, 2024
  • Inspection findings communicated: March 20, 2024
  • Show-cause notice issued: June 10, 2024

Impact Assessment

This enforcement action reinforces SEBI’s commitment to ensuring Research Analysts operate within regulatory boundaries. While specific to one individual, it serves as a warning to other research analysts about the consequences of non-compliance and license misuse. The action helps maintain market integrity by preventing unauthorized use of research analyst registrations.

Impact Justification

Regulatory action against individual research analyst, affects market integrity but limited direct market impact