SEBI finds Research Guru adviser's staff lacked required certifications

This is a final order by SEBI regarding the inspection of Ms. Veena Sharma, the proprietor of Research Guru Investment Adviser, concerning alleged violations of compliance requirements such as employee qualifications, record maintenance, and fiduciary duties.

Who it concerns: Ms. Veena Sharma (Proprietor, Research Guru Investment Adviser); Mr. Abhishek Sharma (mentioned as running operations); Ms. Monika Sharma (mentioned regarding bank accounts).

What SEBI found or ordered

• SEBI conducted a surprise onsite inspection from July 14, 2022, to July 18, 2022.
• SEBI found that employees providing investment advice lacked required certifications.
• SEBI found that the Noticee failed to perform risk profiling and suitability assessments for clients.
• SEBI found that fees were received in bank accounts other than the registered account of the Investment Adviser, including an account in the name of Ms. Monika Sharma.
• SEBI found that the Noticee misrepresented clients and failed to discharge fiduciary duties.
• SEBI noted that hard disks were removed and records were damaged to prevent access by inspecting officers.
• The Designated Authority recommended the cancellation of the Noticee's SEBI registration (INA000005507).
• A monetary penalty of INR 12 lakh was previously imposed and paid in separate adjudication proceedings.

Also in the document

• SEBI stated that the Noticee was not present in the office during the inspection.
• SEBI observed that employees present failed to cooperate with the inspection.
• The order notes that the Noticee stopped the Investment Adviser business after the inspection.
• The order mentions a previous adjudication where a penalty was paid, which the Noticee argued should preclude further severe action.