In an order dated December 12, Sebi cancelled the certificate of registration of Purooskhan, a Sebi-registered research analyst, bringing to a close proceedings that began after multiple investor complaints flagged the misuse of his registration number by a third-party entity offering illegal investment advice.
The case traces back to June 2022, when Sebi received a complaint through its SCORES platform alleging that a website, “optionresearch.in“, was promising “sure-shot” trading calls, no-risk strategies and capital-doubling schemes while claiming to be Sebi-certified. The complainant said he had paid Rs 50,000 in fees and subsequently suffered trading losses of nearly Rs 4 lakh.
Sebi’s initial findings showed that the website was quoting the registration number of Purooskhan, who had been registered as a research analyst since June 2018. Payment trails revealed that the fees collected from investors were routed to bank accounts belonging to a partnership firm named Option Research Consultancy (ORC), which was not registered with Sebi as an investment adviser or research analyst.
A second complaint followed in February 2023, with another investor alleging losses after paying for services linked to the same firm. These complaints prompted Sebi to widen its probe into ORC, its partners, and the role of the registered analyst whose credentials were being displayed.
Action against the advisory firm
Sebi concluded that ORC and its partners were acting as unregistered investment advisers and were fraudulently using a Sebi registration number to lend legitimacy to their offerings. In August 2024, the regulator ordered the firm and its partners to refund over Rs 30 crore to investors, barred them from accessing the securities market for two years, and imposed monetary penalties of Rs 6 lakh each.
Parallel proceedings were initiated against Purooskhan under both adjudication provisions and intermediary regulations, focusing on whether he had enabled or failed to prevent the misuse of his registration details.
In April 2025, Sebi’s adjudicating officer gave Purooskhan the benefit of doubt in penalty proceedings, noting that the available material did not conclusively establish collusion or that he had received any monetary benefit from the unregistered advisory activities. The order also recorded that the analyst had filed police and cybercrime complaints alleging misuse of his name and registration number.
However, the same officer, acting as a designated authority under Sebi’s intermediary regulations, took a far stricter view of the conduct. The authority noted that Purooskhan had admitted to sharing the password of his registered email ID with another individual linked to ORC. According to Sebi, this amounted to a serious lapse for a registered intermediary, as it compromised regulatory communication, security, and investor protection.
The designated authority recommended cancellation of the research analyst’s licence, citing the threat such conduct posed to the orderly functioning of the securities market.
A show-cause notice was issued in September 2025, asking Purooskhan why his registration should not be cancelled. While he did not submit a written reply, he later informed Sebi by email that he wished for his registration to be cancelled.
During a virtual personal hearing in December 2025, the regulator recorded that Purooskhan stated he was running a small provision store and was not actively engaged in research analyst activities. He agreed to the cancellation of his registration, as recommended by Sebi’s designated authority.
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