In a rare and surprising case, the Securities and Exchange Board of India (SEBI) has cancelled the registration of a research analyst who, instead of dealing in market research or investment advice, was found running a small grocery store in Madurai. The incident left the regulator astonished at how such an individual had managed to obtain official registration in the first place.
Investigation Unveils Grocery Store Operations
SEBI’s quasi-judicial authority, Santosh Kumar Shukla, noted in the order, “During the hearing through virtual mode, it appeared that the Notice is not conversant with securities market activities and he runs a small provision store selling daily essentials, snacks, etc. It could not be reasonably gauged as to how such a person was having registration as a Research Analyst.”
Shukla further recorded, “The Notice submitted that he is running a small business and does not undertake any research analyst activity.” Following these findings, SEBI revoked Purooskhan’s research analyst registration.
Case Originated from Investor Complaint
The probe began after SEBI received a complaint in June 2022 via its SCORES platform regarding a website, www.optionresearch.in. The website claimed “sure shot” calls with zero risk and promised to double investors’ capital. The complainant paid Rs 50,000 for the service but eventually suffered losses of around Rs 4 lakh.
Purooskhan claimed his SEBI registration number was misused by the website and submitted police complaints filed with the Tamil Nadu Police and the Cyber Cell under online financial fraud. However, SEBI found that the Option Research Company (ORC) website offered paid advisory services using Purooskhan’s registration number, and he had allegedly shared his email ID and password.
Purooskhan stated that G Faheeth Ali, one of ORC’s partners, approached him pretending to be a bank employee and collected personal documents, which were later misused. He also claimed that an appointment letter naming him compliance officer and authorizing him to issue trading calls was offered, but he declined.
Previous Orders and Final Action by SEBI
Earlier, the adjudicating officer had given Purooskhan the benefit of doubt and closed the case without any monetary penalty. In August 2024, a separate order had directed a refund of Rs 30.39 lakh and a two-year debarment from the securities market, along with Rs 6 lakh penalties for related entities.
This time, SEBI decided to cancel Purooskhan’s research analyst registration entirely, closing the unusual chapter of the “grocery store research analyst” in India’s regulatory history.