In a shocking case that surprised even the regulator, the Securities and Exchange Board of India (SEBI) has cancelled the registration of a person who was officially listed as a research analyst but was actually running a small grocery shop in Madurai.
SEBI revoked the licence of Purooskhan after finding that he had no involvement in the securities market. During a hearing, it came to light that he operates a tiny 100-square-feet provision store selling daily essentials and snacks, and does not provide any market research or investment advice.
The matter was heard by SEBI’s quasi-judicial authority Santosh Kumar Shukla, who expressed surprise over how such a person was able to get registered as a research analyst.
In his order, Shukla noted that during the virtual hearing, Purooskhan appeared unfamiliar with securities market activities and clearly stated that he was running a small business and not carrying out any research analyst work.
Based on these observations, SEBI decided to cancel his research analyst registration. The case began in June 2022 after SEBI received a complaint on its SCORES platform against a website called optionresearch.in. The website promised “sure shot” trading calls, claimed zero risk, and assured investors that their money would double.
The complainant paid Rs 50,000 for the services but later suffered losses of around Rs 4 lakh. During its examination, SEBI found that the website offered several paid investment advisory packages and projected itself as a SEBI-registered entity.
It was also observed that the website prominently displayed Purooskhan’s SEBI registration number. When questioned, Purooskhan told SEBI that his registration details were being misused and that he had no connection with the website.
He submitted copies of police complaints filed with the Tamil Nadu Police and the Cyber Cell, alleging online financial fraud. However, SEBI noted that the Option Research Company had allegedly been allowed to use his registration details.
The regulator also observed that he had shared his email ID and password, which raised serious concerns. Purooskhan later claimed that one of the partners of the company had approached him by posing as a bank employee and told him about a vacancy for a research analyst.
According to him, his documents were collected under this pretext and later misused. After SEBI started investigating, the company reportedly issued him an appointment letter naming him as a compliance officer and authorising him to issue trading calls, an offer he said he refused.
