SEBI orders action against Eqwires for misleading clients and handling demat accounts

Who it concerns: M/s Eqwires Research Analyst (SEBI Registration No. INH000007465)

What SEBI found or ordered

• SEBI conducted a surprise onsite inspection from November 22, 2021, to November 25, 2021.
• The Designated Authority (DA) found that the Noticee misled clients by giving assurances regarding fixed returns.
• The DA found that the Noticee failed to comply with applicable circulars, rules, and regulations.
• Violations of the SEBI (Research Analyst) Regulations, 2014, and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, were established.
• A penalty was levied via Adjudication Order No. Order/AK/DS/2025-26/31592-31594 dated August 13, 2025.
• The DA recommended that a regulatory censure be issued to the Noticee.
• The Noticee admitted to handling two or three client demat accounts and publishing bogus testimonials on its website and social media.
• The Noticee stated that the penalty amount has been duly paid.

Also in the document

• The Noticee argued that the prohibition on handling client demat accounts for fees was introduced by SEBI in 2025, after the inspection period.
• The Noticee claimed that the use of the word 'advice' on its website and in bank statements was inadvertent and that it only provided Research Analyst services.
• The Noticee stated that it has approximately 70-80 clients.
• The Noticee claimed that bogus testimonials were removed immediately upon notice and that no client was onboarded based on the website.