Description

SEBI imposes penalties on Eqwires Research Analyst and partners for acting as investment adviser without registration and other regulatory violations.

Summary

SEBI has issued an adjudication order against Eqwires Research Analyst (Registration No. INH000007465) and its partners Bansri Pankajbhai Thakkar and Pranay Dineshbhai Morakhiya for violations of SEBI regulations. The violations were identified during an inspection covering the period April 1, 2020 to November 25, 2021.

Key Points

  • Eqwires Research Analyst found violating SEBI Act, Research Analysts Regulations, PFUTP Regulations, and Investment Advisers Regulations
  • Inspection period: April 1, 2020 to November 25, 2021
  • Show Cause Notice issued on January 31, 2025
  • Noticees submitted reply on February 28, 2025
  • Primary violation: Acting as investment adviser without proper registration and compliance

Regulatory Changes

No new regulatory changes introduced - enforcement of existing regulations under SEBI (Research Analysts) Regulations, 2014 and SEBI (Investment Advisers) Regulations, 2013.

Compliance Requirements

  • Research analysts must not act as investment advisers without separate registration
  • Proper compliance with all applicable SEBI regulations required
  • Clear distinction must be maintained between research analyst and investment adviser activities
  • Website disclosures must be accurate and not misleading

Important Dates

  • Inspection period: April 1, 2020 to November 25, 2021
  • Adjudication proceedings approved: October 10, 2022
  • Show Cause Notice issued: January 31, 2025
  • Reply submitted: February 28, 2025
  • Adjudication Order issued: August 13, 2025

Impact Assessment

This enforcement action reinforces SEBI’s commitment to ensuring clear boundaries between different regulated activities. Research analysts and investment advisers must maintain strict compliance with their respective regulatory frameworks and cannot cross-operate without proper registrations.

Impact Justification

Enforcement action against specific research analyst for regulatory violations - important for compliance awareness