Description

SEBI adjudication order against Research Guru (Investment Adviser) and its operator Abhishek Sharma for multiple violations of Investment Advisers Regulations, Code of Conduct, and fraudulent trade practices.

Summary

SEBI has issued Adjudication Order No. Order/SM/SM/2025-26/31989-31990 under Section 15-I of SEBI Act, 1992 against Research Guru (Investment Adviser, Registration No. INA000005507), its Proprietor Mrs. Veena Sharma, and Mr. Abhishek Sharma. The proceedings were initiated following a complaint from a former employee and revelations during Capital Vista hearings that Abhishek Sharma was operating the investment advisory business and distributing franchises to allow unregistered entities to carry out advisory activities. SEBI conducted a surprise inspection from July 14-18, 2022 for the period from April 1, 2021 onwards at the registered office.

Key Points

  • Noticee 1: Research Guru, Proprietor - Mrs. Veena Sharma (PAN: CCCPS4149A, SEBI Registration: INA000005507)
  • Noticee 2: Abhishek Sharma (PAN: BOKPS5331D)
  • Complaint alleged proprietor never visited office since obtaining registration and entire operations carried out by Abhishek Sharma
  • Alleged distribution of franchises allowing unregistered entities to conduct investment advisory activities in Research Guru’s name
  • Surprise inspection conducted July 14-18, 2022 covering period from April 1, 2021 onwards
  • Capital Vista hearings revealed Abhishek Sharma was the actual person behind Capital Vista

Regulatory Changes

No new regulatory changes. This is an enforcement order for violations of existing regulations.

Compliance Requirements

The adjudication proceedings were initiated for alleged violations of:

Under Section 15A(a) of SEBI Act:

  • Regulation 15(12) of SEBI (Investment Advisors) Regulations, 2013

Under Section 15EB of SEBI Act:

  • Regulation 15(1) and clauses 1, 2, 3, 4, 5, 6, 7, and 8 of Third Schedule (Code of Conduct for Investment Advisers) read with Regulation 15(9) of IA Regulations, 2013
  • Schedule II of SEBI (Intermediaries) Regulations, 2008 read with Regulation 7(2)(e)
  • Regulations 3(a), (c), (d), and 4(2)(o) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 read with Sections 12A(a), (b), and (c) of SEBI Act
  • Regulation 7 of IA Regulations, 2013
  • Regulations 13(a) and 13(b) of IA Regulations, 2013
  • Regulation 15(12) of IA Regulations, 2013
  • Regulations 16 and 17 of IA Regulations, 2013
  • Regulation 18(1) of IA Regulations, 2013

Important Dates

  • April 1, 2021: Start of inspection period
  • July 11, 2022: Hearing before Competent Authority in Capital Vista matter where Abhishek Sharma’s involvement was revealed
  • July 14-18, 2022: Surprise inspection conducted at registered office
  • January 22, 2026: Order published

Impact Assessment

Market Impact: Limited direct market impact as this affects specific investment adviser entities rather than broad market operations.

Regulatory Impact: Demonstrates SEBI’s enforcement focus on Investment Adviser compliance, particularly regarding:

  • Proper operational control by registered entities
  • Prevention of unauthorized franchise/sub-advisory arrangements
  • Adherence to Code of Conduct requirements
  • Maintenance of proper books and records

Industry Impact: Serves as warning to Investment Advisers against allowing unregistered persons to conduct advisory activities under their registration through franchise or other arrangements. Reinforces requirement that registered proprietor must maintain active involvement in operations.

Impact Justification

Enforcement action against registered Investment Adviser for serious violations including allowing unregistered entities to conduct advisory activities through franchise model, but limited to specific entities rather than systemic market impact.