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SEBI: The Securities and Exchange Board of India (SEBI) canceled the registration of a person who was operating a tiny grocery store in Madurai but was legally listed as a research analyst in a stunning situation that even the regulator was taken aback by.

After discovering that Purooskhan was not involved in the securities industry, SEBI cancelled his license.

He runs a small 100-square-foot supply shop that sells snacks and everyday necessities, but he doesn’t provide any financial advice or market analysis, it was revealed during a hearing.

Santosh Kumar Shukla, SEBI’s quasi-judicial authority, heard the case and was shocked that someone of that caliber could register as a research analyst.

According to Shukla’s ruling, Purooskhan looked unfamiliar with securities market activity during the virtual hearing and made it plain that he was managing a small company and not working as a research analyst.

SEBI chose to revoke his registration as a research analyst in light of these findings.

The case started in June 2022 when SEBI received a complaint against the website optionresearch.in on its SCORES platform.

The website told investors that their money would double, claimed there was no danger, and offered “sure shot” trading predictions.

The complainant lost over Rs 4 lakh after paying Rs 50,000 for the services.

The website presented itself as a SEBI-registered organization and provided a number of paid investment consulting packages, according to SEBI’s investigation.

Additionally, Purooskhan’s SEBI registration number was widely published on the website.

When questioned, Purooskhan said he had nothing to do with the website and that his registration data were being abused.

He provided printouts of police reports claiming online financial theft that were filed with the Cyber Cell and the Tamil Nadu Police.

SEBI did point out that the Option Research Company was purportedly permitted to utilize his registration information.

Serious concerns were aroused by the regulator’s observation that he had disclosed his email address and password.

Later, Purooskhan said that one of the company’s partners had contacted him while pretending to be a bank employee and informed him about a research analyst position.

He claims that this pretense was used to gather his records, which were then exploited.

He claimed to have rejected the company’s offer of an employment letter designating him as a compliance officer and granting him the authority to make trade calls after SEBI began its investigation.