Market regulator Securities and Exchange Board of India (SEBI) has censured Parag Salot, a registered research analyst (RA) since March 2015. SEBI also warned him to exercise greater care and diligence in his business conduct.
The action follows an inspection conducted for the period from April 2022 to February 2024, which revealed multiple violations of the SEBI Act, the Research Analyst Regulations and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
SEBI initiated enquiry proceedings against the RA in May 2024 and a show-cause notice (SCN) was issued to him in July 2024. The regulator noted that Mr Salot had closed his research business but had not surrendered his registration. It was also observed that he had withdrawn a settlement application.
Based on inspection findings and the RA response, SEBI initiated enquiry proceedings under the Intermediaries Regulations, 2008, and appointed a designated authority (DA) on 3 May 2024, to examine the alleged violations and provide recommendations.
The DA found that Mr Salot had mis-sold services and fraudulently collected funds by making misleading promises on his website shareideas.in. The website advertised services such as index option and platinum option service with claims of profits ranging from Rs4,000 to Rs30,000 per trade.
It also carried phrases like ‘profit assured’ and ‘pay only when you make profits’. While Mr Salot argued that a scrolling disclaimer clarified there were no guaranteed returns, SEBI held that the static profit claims were far more prominent and misleading. He also misrepresented himself as an ‘authorised investment advisor’ without holding such registration.
Although he blamed these issues on errors by his web developer, SEBI held that intermediaries remain fully responsible for the accuracy of their website content. The enquiry established that Mr Salot induced clients, including one Pramod Kumar, into subscribing to his services by making false profit assurances, thereby engaging in fraud and mis-selling in violation of the PFUTP Regulations, the SEBI Act and the RA Code of Conduct.
The DA further noted that he had failed to conduct annual compliance audits from FY14-15 to FY23-24, had not updated SEBI on a change in his office address, and had provided inconsistent information about his office locations. His website carried a Navi Mumbai address while SEBI records continued to reflect an old office at Raghuleela Mall.
It was also observed that he had not displayed the mandatory investor charter and complaints data on his website or shared them with clients by email as required. SEBI rejected his argument that these obligations were not relevant since his business had closed, clarifying that compliance requirements continue as long as registration remains valid.
The enquiry further noted his failure to maintain records of all email addresses used for RA activities, a lapse that hindered oversight of client complaints. Another violation related to the absence of a valid National Institute of Securities Markets (NISM) certification between December 2016 and September 2022.
Mr Salot argued that he believed his qualification exempted him from renewal, but SEBI reiterated that ignorance of the law is not a valid defense. Although he later renewed the certification, the lapse remained a violation of the RA Regulations.
In its report, the DA recommended regulatory censure, taking into account that Mr Salot had closed his business, was not onboarding new clients, and had already paid a monetary penalty of Rs17 lakh imposed by SEBI’s adjudicating officer (AO) on 15 January 2025.
SEBI noted that he had also taken corrective steps, such as furnishing past audit reports and updating records. Considering these factors, SEBI decided against imposing harsher measures and instead issued a formal censure, warning him to exercise due care and diligence in any future business activities.
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