Description

SEBI imposes penalties on research analyst Amit Guruh Sachdeva for violations of research analyst regulations and record maintenance failures.

Summary

SEBI has issued an adjudication order against research analyst Amit Guruh Sachdeva (Registration No. INH100005190) for multiple violations of research analyst regulations. The violations were identified during an inspection conducted for the period April 1, 2022 to February 29, 2024.

Key Points

  • Research analyst Amit Guruh Sachdeva faced SEBI inspection on March 14-15, 2024
  • Multiple violations found related to record maintenance and regulatory compliance
  • Violations include failure to maintain annual audit reports, signed research reports, and client master records
  • Show Cause Notice issued on October 31, 2024
  • Adjudication proceedings conducted under Section 15-I of SEBI Act

Regulatory Changes

No new regulatory changes introduced. This order enforces existing research analyst regulations.

Compliance Requirements

  • Research analysts must maintain proper records including annual audit reports
  • Research reports must be duly signed and dated
  • Client master records must be maintained for all clients
  • Rationale for research recommendations must be documented
  • Compliance with Code of Conduct as specified in Third Schedule of RA Regulations

Important Dates

  • Inspection period: April 1, 2022 to February 29, 2024
  • Inspection conducted: March 14-15, 2024
  • Inspection findings communicated: June 27, 2024
  • Show Cause Notice issued: October 31, 2024
  • Adjudicating Officer appointed: May 2, 2025

Impact Assessment

This enforcement action reinforces SEBI’s commitment to ensuring research analysts maintain proper compliance standards. While affecting only one individual analyst, it serves as a reminder to all research analysts about the importance of maintaining comprehensive records and adhering to regulatory requirements. The order demonstrates SEBI’s ongoing supervision of research analyst activities.

Impact Justification

Individual research analyst penalty with limited market-wide impact but important for regulatory compliance