SEBI Revokes Analyst's Registration After Credentials Misused by Fraudulent Investment Advisory Platform

The Securities and Exchange Board of India (SEBI) has cancelled the registration of research analyst Purooskhan, citing serious lapses in safeguarding regulatory credentials that were misused by an unregistered investment advisory firm.

Purooskhan, registered with SEBI since 2018, admitted to sharing the email password linked to his SEBI registration with a partner of Option Research Consultancy (ORC). ORC, which was not registered with SEBI, used his credentials to falsely project legitimacy on its website, optionresearch.in, misleading investors into believing the platform was SEBI‑certified.

Investor Complaints Triggered Probe

• Between 2022 and 2023, SEBI received multiple complaints against optionresearch.in.

• Investors alleged the platform promised guaranteed returns and charged fees for investment advisory packages, practices explicitly prohibited under securities laws.

• Several investors reported heavy financial losses after following the advice sold through the site.

EBI’s investigation confirmed ORC and its associates operated illegally as investment advisers. In its August 27, 2024, order, SEBI directed ORC and its partners to refund more than ₹3.039 million to affected investors, barred them from the securities market for two years, and imposed ₹600,000 penalties on each partner.

Accountability of Registered Intermediaries

While SEBI found no evidence of Purooskhan’s direct collusion or financial gain, the regulator stressed that his negligence undermined investor safeguards. Sharing credentials with unregistered entities weakened SEBI’s compliance framework and exposed investors to fraud.

In September, SEBI issued a show‑cause notice and later accepted Purooskhan’s submission that he was no longer active as an analyst. In its final action, SEBI cancelled Purooskhan’s research analyst registration under the SEBI Act and the Intermediaries Regulations, citing investor protection and market integrity as decisive factors.

BrokersView Reminds You

SEBI has explicitly prohibited all registered intermediaries from forming any kind of association with unregistered entities, including investment advisers and financial influencers.

Learn how to check an entity’s SEBI registration status here.