Description
SEBI has debarred Lifeinspire Knowledge Solutions Private Limited and its directors from securities market for 2 years for conducting unregistered investment advisory activities through bankniftyoption.in website.
Summary
SEBI has issued an order (QJA/MN/SRO/SRO-DIV-III/31745/2025-26) dated October 29, 2025, debarring Lifeinspire Knowledge Solutions Private Limited (LKSPL) and its two directors from buying, selling, or dealing in securities for a period of two years. The debarment stems from the company conducting unregistered investment advisory activities through the website bankniftyoption.in, which offered various packages for providing investment advisory services in the securities market.
Key Points
- SEBI discovered LKSPL’s unregistered advisory activities during examination of Option Research Consultancy
- The website bankniftyoption.in was identified as a subsidiary of LKSPL offering investment advisory packages
- Three entities have been debarred: M/s. Lifeinspire Knowledge Solutions Private Limited (PAN: AAECL3050A), Shri M.S. Ahammed Ali (PAN: DDMPA2078A), and Shri M.S. Mohammed Ali (PAN: FPKPM0819D)
- Shri M.S. Ahammed Ali is both a partner of Option Research Consultancy and a director of LKSPL
- The debarment period is 2 years from order date or until compliance with directions, whichever is later
- Entities can close existing derivative positions within 3 months or at contract expiry, whichever is earlier
- Order issued under Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) of SEBI Act, 1992
Regulatory Changes
No new regulatory framework changes. This is an enforcement action against entities violating existing regulations requiring registration for investment advisory services.
Compliance Requirements
- NSE members must take note of the debarred entities and ensure compliance
- The debarred entities are prohibited from buying, selling, or dealing in securities directly or indirectly
- Consolidated list of debarred entities is available at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
- Members can contact dl-invsg-all@nse.co.in for queries
- Full SEBI order available at: http://www.sebi.gov.in
Important Dates
- October 29, 2025: Date of SEBI order and NSE circular
- Within 3 months from order date: Deadline for closing open derivative positions (or at contract expiry, whichever is earlier)
- 2 years from order date (or later): Debarment period duration
Impact Assessment
Market Impact: Limited direct market impact as this affects three specific entities engaged in illegal advisory activities. The action does not affect broader market operations or trading mechanisms.
Industry Impact: Serves as a deterrent against conducting unregistered investment advisory services. Reinforces regulatory requirement for proper registration before offering advisory services.
Investor Protection: Positive impact on investor protection by removing unregistered advisory service providers from the market. Investors are protected from potentially harmful advice from unregulated entities.
Operational Impact: NSE members must update their systems to prevent transactions by the debarred entities. The allowance for closing derivative positions within 3 months provides operational flexibility.
Impact Justification
High severity enforcement action but limited market-wide impact as it affects specific entities conducting illegal advisory services. Important for awareness but does not affect broader market operations.