Market regulator Securities and Exchange Board of India (SEBI) has issued a regulatory censure against research analyst (RA) Amit Guruh Sachdeva for misleading clients with assurances of fixed returns and for failing to cooperate fully during a regulatory inspection. However, SEBI refrained from barring him from onboarding new clients, noting that he had already paid a monetary penalty of ₹2 lakh in related adjudication proceedings.
In an order issued on 27 May 2026, SEBI found that Mr Sachdeva violated provisions of the SEBI (Research Analysts) Regulations, 2014, and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
The matter arose from a surprise onsite inspection conducted by SEBI on 14 and 15 March 2024, covering the period from 1 April 2022 to 29 February 2024. During the inspection, SEBI found that representatives of Mr Sachdeva routinely promised prospective clients returns of ‘18%-20%’ and, in some cases, ‘20%-25%’ profits.
According to the order, call recordings collected during the inspection showed relationship managers repeatedly telling prospective clients that they would ‘try to generate 18%-20% profit’ on invested capital. SEBI observed that such statements created ‘clear and quantifiable expectations’ and amounted to misleading representations and mis-selling because investments in securities markets are subject to market risks.
Mr Sachdeva argued that the assurances were made by certain employees without his authorisation and in violation of internal training guidelines. He submitted that the employees had acted overenthusiastically while acquiring clients and that repeat offenders had subsequently been removed from the organisation.
SEBI rejected the defence, holding that the research analyst remained responsible for the conduct of employees acting within the scope of their employment. The regulator observed that the relationship managers functioned as agents of the research analyst and that their actions could not be disowned by the principal.
The regulator also noted that Mr Sachdeva failed to provide evidence of the alleged training manuals or disciplinary action taken against erring employees.
Apart from the assured returns issue, SEBI also held Mr Sachdeva guilty of failing to cooperate adequately during the inspection process. The regulator cited delays in meeting inspection officials and deletion of data from an email account which prevented the retrieval of potentially relevant information.
Mr Sachdeva claimed that the delay occurred because he was allegedly caught in a 'digital arrest' scam involving fraudsters impersonating officials from the Telecom Regulatory Authority of India (TRAI) and Mumbai Police. He also attributed the deletion of emails to a technical glitch. SEBI, however, said no satisfactory evidence was produced to substantiate either claim.
The designated authority had recommended both a regulatory censure and a two-month restriction on onboarding new clients. However, SEBI decided not to impose the restriction, citing mitigating circumstances, including the non-repetitive nature of the violations and the absence of investor complaints linked to the allegations.
SEBI also noted that Mr Sachdeva had already paid the ₹2 lakh penalty imposed in separate adjudication proceedings arising from the same inspection period.
While clarifying that adjudication and enquiry proceedings are independent of each other, SEBI held that non-monetary action was still warranted given the seriousness of the violations. The regulator concluded that a regulatory censure would be 'commensurate and proportionate' in the circumstances of the case.
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