Description

SEBI enquiry order against Research Analyst Nikhil Dayanand Baljekar for failing to cooperate during inspection and allowing third parties to use his registration.

Summary

SEBI has issued an enquiry order against Research Analyst Nikhil Dayanand Baljekar (Registration No. INH000009001) following an inspection covering April 2022 to January 2024. The order addresses violations including non-cooperation during inspection and allowing third parties to operate under his SEBI registration.

Key Points

  • Research Analyst failed to provide requested information during SEBI inspection
  • Did not respond to inspection findings communicated in March 2024
  • Allegedly allowed third parties to use his SEBI registration for Investment Adviser and Research Analyst services
  • Shared client details with unauthorized third parties
  • Permitted recommendations to be given to clients under his name by third parties
  • Outsourced core regulatory activities in violation of regulations

Regulatory Changes

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

  • SEBI (Research Analyst) Regulations 2014
  • SEBI (Intermediaries) Regulations 2008
  • SEBI (Investment Advisers) Regulations 2013

Compliance Requirements

  • Research Analysts must cooperate fully with SEBI inspections
  • Must not allow third parties to operate under their registration
  • Cannot outsource core regulatory responsibilities
  • Must maintain proper records and provide information when requested by SEBI
  • Client details cannot be shared with unauthorized parties

Important Dates

  • Inspection Period: April 1, 2022 to January 31, 2024
  • Information requests: 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 serves as a warning to research analysts about the importance of regulatory compliance and cooperation with SEBI inspections. While limited to one individual, it reinforces standards for the research analyst community regarding proper conduct of licensed activities and maintaining regulatory oversight.

Impact Justification

Individual research analyst enforcement action with limited market-wide impact