Description

SEBI order against research analyst Priyanka Yadav for allowing debarred person to conduct activities and other regulatory violations.

Summary

SEBI issued a final order against Priyanka Yadav, Proprietor of Trade Money Research (Registration No. INH000010991), following violations discovered during an onsite inspection conducted on October 8-9, 2024. The primary violation involved allowing Mr. Sandeep Yadav, a person debarred by SEBI, to conduct research analyst activities for which Priyanka Yadav held the registration.

Key Points

  • Research analyst registration activities were being conducted by Mr. Sandeep Yadav, who is debarred by SEBI from dealing in securities market
  • Noticee had association with debarred person in contravention of registration conditions
  • Registration obtained stating Nagpur address while actual activities conducted from Indore without notifying SEBI
  • Failed to communicate to clients that operations were run by debarred person
  • Did not conduct mandatory annual audit by ICAI/ICSI member
  • Non-compliance with investor grievance mechanism requirements

Regulatory Changes

No new regulatory changes introduced. Order enforces existing Research Analyst Regulations, 2014 provisions.

Compliance Requirements

  • Research analysts must ensure only registered persons conduct research activities
  • Must maintain fit and proper criteria and avoid association with debarred persons
  • Address changes must be intimated to SEBI/RAASB
  • Clients must be informed of material changes affecting operations
  • Annual audit by qualified professionals mandatory
  • Investor grievance mechanism must be maintained and updated on website

Important Dates

  • October 8-9, 2024: Onsite inspection conducted
  • May 20, 2025: Show Cause Notice issued
  • June 7, 2025: Noticee’s reply submitted
  • June 27, 2025: First hearing scheduled (Noticee did not appear)
  • July 10, 2025: Second hearing conducted with AR appearance

Impact Assessment

Limited impact on broader market operations. Demonstrates SEBI’s continued vigilance in ensuring research analyst compliance and preventing circumvention of debarment orders. Reinforces importance of maintaining registration integrity and proper disclosure to clients.

Impact Justification

Enforcement action against individual research analyst with limited market-wide impact