The case dates back to June 2022, when Sebi received a complaint through its SCORES platform alleging that a website:optionsresearch.in”, promised ‘sure’ trading calls, risk-free strategies and capital doubling schemes, while claiming to be Sebi certified. The complainant said he paid Rs 50,000 in fees and subsequently suffered trading losses of almost Rs 4 lakh.Sebi’s initial findings revealed that the website listed the registration number of Purooskhan, who had been registered as a research analyst since June 2018. Payment traces showed that fees collected from investors were diverted to bank accounts of a partnership firm called Option Research Consultancy (ORC), which was not registered with Sebi as an investment advisor or research analyst.
A second complaint followed in February 2023, with another investor claiming losses after paying for services associated with the same company. These complaints prompted Sebi to expand its investigation into ORC, its partners and the role of the registered analyst whose credentials were exposed.
Action against the consultancy firm
Sebi concluded that ORC and its partners acted as unregistered investment advisors and fraudulently used a Sebi registration number to lend legitimacy to their offerings. In August 2024, the regulator ordered the company and its partners to refund over Rs 30 crore to investors, banned them from entering the securities market for two years and imposed monetary penalties of Rs 6 lakh each.
Parallel proceedings were initiated against Purooskhan under both arbitration provisions and conciliation rules, focusing on whether he had enabled or failed to prevent the misuse of his registration data. In April 2025, Sebi’s referee Purooskhan gave the benefit of doubt in criminal proceedings, noting that the available material did not establish beyond reasonable doubt that there was collusion or that he had received any monetary benefit from the unregistered consultancy activities. The order also stated that the analyst had filed complaints with the police and cybercrime for misuse of his name and registration number.
However, the same official, who acted as a designated authority under Sebi’s mediation rules, took a much stricter stand on the conduct. The authority noted that Purooskhan had admitted to sharing the password of his registered email address with another person associated with ORC. According to Sebi, this amounted to a serious lapse for a registered intermediary as it compromised regulatory communications, security and investor protection.
The designated authority recommended revoking the research analyst’s license, citing the threat such behavior posed to the orderly functioning of the securities market.
A show-cause notice was issued in September 2025, asking Purooskhan why his registration should not be cancelled. Although he did not submit a written response, he later informed Sebi by email that he wished his registration to be cancelled.
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During a virtual in-person hearing in December 2025, the regulator recorded that Purooskhan stated that he ran a small stock shop and was not actively involved in the activities of research analysts. He agreed to the cancellation of his registration as recommended by the designated authority of Sebi.
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