SEBI Cancels Research Analyst License After Investment Advisory Fraud Investigation
SEBI has cancelled the research analyst registration of Purooskhan following an investigation into credential misuse by unregistered investment advisory firm Option Research Consultancy. The firm illegally used his registration number on their website to offer guaranteed returns, defrauding investors of over ₹30 lakh before facing penalties and market bans.
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The Securities and Exchange Board of India (SEBI) has cancelled the registration of research analyst Purooskhan following a comprehensive investigation into the fraudulent misuse of his regulatory credentials by an unregistered investment advisory firm. The cancellation came after Purooskhan admitted during regulatory proceedings that he operates a grocery store and is no longer engaged in research analyst activities.
Investigation Origins and Investor Complaints
The case began when SEBI received investor complaints through its SCORES platform regarding the website "optionresearch.in" that was illegally using Purooskhan's registration number to offer investment advisory services. The platform promised guaranteed returns and no-risk trading strategies, misleading investors into believing it was SEBI-certified.
| Investigation Timeline | Details |
|---|---|
| Registration Date | 2018 (Purooskhan as research analyst) |
| First Complaints | 2022-2023 via SCORES platform |
| Website Investigated | optionresearch.in |
| Enforcement Action | August 27, 2024 |
| License Cancellation | December 12, 2025 |
Investors reported paying substantial fees for advisory packages and subsequently suffering heavy trading losses after following the platform's advice. The investigation revealed that payment trails led to bank accounts belonging to Option Research Consultancy (ORC), a partnership firm operating without SEBI registration.
Enforcement Action Against Unregistered Firm
SEBI's probe established that ORC and its partners were conducting illegal investment advisory activities while fraudulently displaying Purooskhan's credentials to legitimize their operations. The regulator imposed comprehensive penalties on the unregistered firm.
| Enforcement Measures | Amount/Duration |
|---|---|
| Investor Refunds Ordered | ₹30.39 lakh |
| Market Access Ban | 2 years |
| Penalties per Partner | ₹6.00 lakh each |
| Total Partners Penalized | Multiple ORC associates |
Regulatory Proceedings and License Cancellation
SEBI initiated dual proceedings against Purooskhan under both adjudication and intermediary regulations. While adjudication proceedings found insufficient evidence of deliberate collusion or financial gain, the regulator identified serious lapses in his conduct as a registered intermediary.
The critical finding was that Purooskhan had shared his registered email password with an ORC partner, compromising regulatory communications and weakening investor protection safeguards. Following a show-cause notice issued in September 2025, Purooskhan requested cancellation of his registration.
| Cancellation Process | Status |
|---|---|
| Show-Cause Notice | September 2025 |
| Hearing Conducted | December 11, 2025 |
| Current Business Activity | Small provision store |
| Registration Status | Cancelled effective December 12, 2025 |
During the final hearing, Purooskhan confirmed he was operating a small provision store selling daily essentials and was no longer engaged in research analyst work. SEBI cancelled his registration citing investor protection and market integrity concerns, emphasizing the importance of maintaining robust safeguards in the intermediary registration system.
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