SEBI issues final order against Streetgains Research Services over assured returns violations

This is a final order by SEBI regarding Streetgains Research Services, a registered Research Analyst, concerning alleged violations of regulations related to providing assured returns, mis-selling, and compliance failures identified during an inspection.

Who it concerns: Streetgains Research Services (Research Analyst, Proprietor: Kumar Venkataramegowda Santhosh)

What SEBI found or ordered

• SEBI found that the Noticee provided assurances of returns or loss recovery to clients, misleading them into dealing in securities.
• SEBI found that the Noticee advertised past performance of research calls on social media.
• SEBI found that the Noticee maintained an incentive structure for sales executives that encouraged selling products not suited to clients' risk profiles.
• SEBI found that the Noticee failed to digitally sign research reports maintained in electronic form.
• The Designated Authority recommended a 'regulatory censure' and a prohibition from taking up new clients for one month.
• The order is issued under Section 12(3) of the SEBI Act and Regulation 27 of the SEBI (Intermediaries) Regulations, 2008.

Also in the document

• The inspection period covered April 1, 2022, to March 14, 2024.
• The order is a 'Final Order,' indicating the conclusion of the proceedings, though the specific final penalty imposed by SEBI in the 'Order' section (Section F) is not fully detailed in the provided truncated text beyond the DA's recommendations.
• The Noticee contested the findings, arguing that statements were indicative of possibility rather than guarantees and that risk disclosures were made during onboarding.