SEBI bars Alliance Research from accessing client accounts over compliance violations

It details the procedural history, including interim directions, a Designated Authority's report, and the rejection of the firm's settlement proposal.

Who it concerns: M/s Alliance Research (Proprietor: Mudassir Hasan)

What SEBI found or ordered

• Interim order dated January 6, 2021, barred the Noticee from accessing the securities market and acting as an investment adviser.
• Interim order directed the Noticee to cease soliciting clients, remove advertisements, and freeze demat accounts.
• Designated Authority (DA) report dated October 17, 2023, recommended suspension of the registration certificate for six months.
• Noticee filed for settlement in November 2023, which was rejected by SEBI on July 11, 2025.
• Show Cause Notice (SCN) dated April 15, 2025, was issued based on the DA's report.
• Noticee did not file a written reply to the SCN but appeared for a hearing on August 28, 2025, and submitted written arguments on September 10, 2025.

Also in the document

• SEBI noted that the case involved parallel proceedings under Section 12(3) and Section 15I of the SEBI Act, which were resolved to proceed independently.
• The interim order was based on preliminary observations including lack of suitability policies, failure to conduct KYC/risk profiling for sampled clients, and charging of unfair fees.
• The DA clarified that certain allegations (such as improper KYC and unfair fees) were not part of the specific reference for the Section 12(3) enquiry and were excluded from the report.