Description

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

Summary

SEBI has issued an enquiry order against Research Analyst Nikhil Dayanand Baljekar (Registration No. INH000009001) for violations during the inspection period from April 2022 to January 2024. The analyst failed to cooperate with SEBI’s inspection and allegedly allowed third parties to misuse his registration for providing investment recommendations.

Key Points

  • Research Analyst registration number: INH000009001
  • PAN: ABYPB7880N
  • Inspection period: April 1, 2022 to January 31, 2024
  • Failed to provide requested information despite multiple reminders
  • Did not respond to inspection findings communicated on March 20, 2024
  • Allegedly allowed third parties to use his SEBI registration
  • Shared client details with unauthorized third parties
  • Permitted recommendations to be given under his name by others

Regulatory Changes

No new regulatory changes introduced. This order enforces existing regulations under SEBI (Research Analyst) Regulations 2014.

Compliance Requirements

  • Research Analysts must fully cooperate with SEBI inspections
  • Must provide all requested information and documents promptly
  • Cannot allow third parties to use their SEBI registration
  • Must not share client information with unauthorized parties
  • Cannot outsource core research analyst activities
  • Must maintain proper records as per regulations

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
  • Order date: September 1, 2025

Impact Assessment

This enforcement action reinforces SEBI’s commitment to maintaining integrity in the research analyst ecosystem. While impacting only one individual analyst, it serves as a warning to other registered analysts about the importance of compliance and cooperation with regulatory inspections. The order highlights risks of license misuse and unauthorized delegation of responsibilities.

Impact Justification

Regulatory action against individual analyst, limited market-wide impact but important for compliance standards