SEBI finds research analyst assured clients of fixed returns

Who it concerns: Mr. Amit Guruh Sachdeva (Research Analyst, SEBI Reg. No. INH100005190)

What SEBI found or ordered

• SEBI found that the Noticee misled clients by giving assurances regarding fixed returns.
• SEBI found that the Noticee failed to extend cooperation during the inspection by causing undue delay and deleting data from an email ID.
• SEBI determined that violations of the RA Regulations and PFUTP Regulations were established.
• The Designated Authority recommended a regulatory censure and a prohibition from taking up new clients for two months.
• The Noticee argued that the return assurances were made by unauthorized Relationship Managers and that data loss was due to a technical glitch.
• The Noticee mentioned that a penalty of INR 2 lakh was already remitted in separate adjudication proceedings for the same period.

Also in the document

• The order notes that the Noticee is an individual operating at break-even income and has applied to surrender his Investment Adviser registration.
• The Noticee claimed that the delay in meeting the SEBI team was caused by a fraudulent 'digital arrest' call, though SEBI maintained the finding of non-cooperation.