Description

SEBI order under Section 12(3) of SEBI Act and Regulation 27, 35 of Intermediaries Regulations and Regulation 32 of Research Analyst Regulations concerning Mr. Purooskhan (Registration No. INH200006008) regarding misuse of his registration number by unauthorized entities.

Summary

SEBI has issued an order under Section 12(3) of the SEBI Act, 1992 and Regulations 27 and 35 of the SEBI (Intermediaries) Regulations, 2008 and Regulation 32 of the SEBI (Research Analyst) Regulations, 2014 in the matter of Mr. Purooskhan, a registered Research Analyst (Registration No. INH200006008). The order follows complaints regarding the misuse of his SEBI registration number by an unauthorized entity, M/s Option Research Consultancy (ORC), which fraudulently claimed to be SEBI certified and offered investment advisory services using the Noticee’s registration details.

Key Points

  • Mr. Purooskhan is registered with SEBI as a Research Analyst since June 19, 2018 (Registration No. INH200006008, PAN: BCMPP7058L)
  • SEBI received complaints in June 2022 and February 2023 regarding website “www.optionresearch.in” offering guaranteed investment advisory services
  • The website fraudulently used Mr. Purooskhan’s SEBI registration number and claimed to be a SEBI certified company
  • M/s Option Research Consultancy (ORC), a partnership firm formed by Mr. G Faheeth Ali, Ms. Fathima M, and Mr. MS Ahammed Ali, operated the fraudulent scheme
  • Complainants paid fees (Rs. 50,000 and Rs. 5,000) to bank accounts linked to ORC and Mr. Mohamed Fakrudeen and suffered losses
  • Mr. Purooskhan filed police complaints and cybercrime reports in September-October 2022 regarding misuse of his registration
  • SEBI initiated separate proceedings against ORC and its partners, concluding with an order dated August 27, 2024 directing refund of Rs. 30,39,588 and debarment from securities market

Regulatory Changes

No new regulatory changes introduced. This is an enforcement order under existing provisions of:

  • Section 12(3) of the SEBI Act, 1992
  • Regulations 27 and 35 of the SEBI (Intermediaries) Regulations, 2008
  • Regulation 32 of the SEBI (Research Analyst) Regulations, 2014

Compliance Requirements

  • Research Analysts must safeguard their SEBI registration credentials from misuse
  • Registered intermediaries should promptly report any misuse of their registration details to SEBI and law enforcement authorities
  • Research Analysts must ensure their registration information is not being fraudulently used by third parties for unauthorized investment advisory activities
  • Investors should verify the authenticity of SEBI registration numbers directly on SEBI’s official website before engaging services

Important Dates

  • June 19, 2018: Mr. Purooskhan registered as Research Analyst with SEBI
  • June 9, 2022: First complaint received by SEBI (Complaint No. 1)
  • September 27, 2022: Mr. Purooskhan filed e-complaint with Tamil Nadu Police
  • October 11, 2022: Cybercrime incident filed with Cyber Cell
  • February 21, 2023: Second complaint received by SEBI (Complaint No. 2)
  • August 27, 2024: Order passed against ORC and its partners directing refund and debarment
  • December 12, 2025: Current order issued (document reference: QJA/SS/SRO/SRO/31833/2025-26)

Impact Assessment

Market Impact: Limited direct market impact. This is an individual enforcement matter concerning fraudulent misuse of registration credentials.

Regulatory Impact: Reinforces SEBI’s vigilance regarding unauthorized use of intermediary registration details and fraudulent investment advisory schemes. Highlights the importance of intermediaries protecting their registration credentials and promptly reporting misuse.

Investor Protection: Serves as a warning to investors to verify SEBI registration details directly from official sources before engaging services claiming SEBI certification. The case demonstrates SEBI’s commitment to taking action against entities fraudulently using registration numbers.

Industry Impact: Research Analysts and other registered intermediaries should implement stronger safeguards to prevent misuse of their registration credentials and maintain monitoring for unauthorized use of their details.

Impact Justification

Enforcement order against registered research analyst for registration misuse by third parties. Important for intermediary compliance but limited broader market impact.