Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registrations of two research analysts (RAs) Prerna Sharma and Priyanka Yadav, proprietor of Trade Money Research with immediate effect, citing serious regulatory violations and concerns over investor protection.
In two separate final orders, SEBI cancelled the RAs registrations of Ms Sharma and Ms Yadav under Section 12(3) of the SEBI Act, 1992 read with the SEBI (Intermediaries) Regulations, 2008.
In Ms Sharma’s case, SEBI’s inspection covering April 2021 to March 2023 found several violations of the SEBI (Research Analysts) Regulations, 2014 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
The findings included failure to use the term ‘research analyst’ in client correspondence, inadequate disclosures in recommendations, failure to define terms used in recommendations, misleading YouTube videos, failure to maintain the rationale for research recommendations, delays in resolving investor complaints and submission of false work experience documents for obtaining registration.
A key issue involved algorithm-based recommendations generated through ‘Algologic’. SEBI held that these electronic recommendations constituted research recommendations as they were based on multiple indicators and strategies and were intended to influence clients’ investment decisions. However, the recommendations did not contain disclosures required under Regulation 19, including details of material conflicts of interest, business activities, disciplinary history and compensation.
SEBI also raised concerns over Ms Sharma’s YouTube channel, ‘AlgoLogic Live’. Videos carried captions such as ‘earn profit upto 5000/- with Algologic software’ and ‘How to make 5000/- profit daily?’. The regulator observed that such claims could create an impression among investors that securities-market investments offered assured returns. The videos had received 707 and 340 views, respectively, during the relevant period.
According to SEBI, such representations amounted to misrepresentation and could mislead investors. It held that the conduct intended to induce investors to deal in securities constituted ‘fraud’ under the PFUTP Regulations.
The regulator also found that Ms Sharma had failed to maintain the rationale for research recommendations and had not conducted the mandatory compliance audit. Two investor complaints were resolved after 60 days and 154 days, against the prescribed 30-day timeline.
Another serious finding concerned her eligibility for registration. SEBI noted that Ms Sharma admitted to submitting a false experience letter purportedly issued by Motilal Oswal Financial Services, including a false seal, despite never having worked there. The regulator said submitting a false experience certificate undermined the requirement that only persons with the requisite qualifications and experience obtain RA registration and raised serious concerns about her credibility.
SEBI further noted that an adjudication order dated 30 December 2025 had imposed a monetary penalty of ₹15 lakh on Ms Sharma for the violations. The penalty was subsequently recovered through proceedings involving the attachment of her bank and demat accounts. Her investment adviser (IA) registration was separately cancelled on 11 June 2026 after she failed to renew the mandatory NISM certification.
The designated authority found that RA's activities were being carried out by Sandeep Yadav, who had previously been debarred by SEBI. The arrangement breached the conditions attached to the registration and fit-and-proper requirements. Clients were also not informed about the arrangement, while the entity had failed to conduct the mandatory annual audit.
SEBI noted that Mr Yadav, proprietor of Capital Vista Investment Adviser, had been debarred for carrying out unregistered investment advisory activities. The regulator concluded that he was running the operations of Trade Money Research and therefore fell within the definition of an ‘associate’. His disciplinary history was consequently material information that should have been disclosed to clients.
The order noted that Ms Yadav obtained her RA registration on 1 December 2022, after SEBI had issued a show-cause notice to Sandeep Yadav and before the final order against him dated 30 January 2023. SEBI also relied on his signed statement and email admitting that he was running the operations of the RA concern.
SEBI further observed that Mr Yadav had not complied with directions to refund investors. A recovery certificate was issued in 2024 to refund ₹1.01 crore to investors and clients. The regulator concluded that his involvement in running Trade Money Research indicated that Ms Yadav was being used as a front to circumvent SEBI’s directions, describing the arrangement as a grave regulatory infraction.
On the fit-and-proper requirement, SEBI said the criteria include integrity, honesty, ethical behaviour, reputation, fairness and character. Given Mr Yadav’s debarment and his role in operating the registered intermediary, SEBI held that Ms Yadav violated Regulations 6(vii) and 6(x) read with Regulation 13(i) of the RA Regulations.
The designated authority had recommended cancellation of Ms Yadav’s registration, which SEBI accepted, observing that an intermediary closely associated with a person who had violated investors’ interests and continued to defy regulatory directions could not be considered fit and proper.
Both cancellation orders came into force with immediate effect.
You may also want to read…
SEBI, RBI Launch ‘Demat 2.0’ Pilot for Tokenised Corporate Bonds, 3 Issuers Raise ₹1,025 Crore
Moneylife Digital Team
11 September 2026
Market regulator Securities and Exchange Board of India (SEBI), in collaboration with the Reserve Bank of India (RBI), has launched Demat 2.0, a pilot project that introduces tokenised corporate bonds on a distributed ledger while...
Adani Ports & SEZ CEO Karan Adani, CFO B Ravi Pay ₹13.65 Lakh Each To Settle SEBI Proceedings in PMC Projects Case
Moneylife Digital Team
10 September 2026
Adani Ports and Special Economic Zone Ltd (APSEZL) chief executive officer (CEO) Karan Adani and chief financial officer (CFO) B Ravi have settled adjudication proceedings initiated by Securities and Exchange Board of India (SEBI) by...
ICICI Lombard General Insurance Fined ₹1 Crore for Lapses in Outsourcing and Vendor Management
Moneylife Digital Team
10 September 2026
The insurance regulatory and development authority of India (IRDAI) has imposed a penalty of ₹1 crore on ICICI Lombard General Insurance Co Ltd for lapses relating to outsourcing, vendor management and corporate governance...
Agri Commodity Position Limits Revised, SEBI Caps Penalty at ₹2 Lakh for Larger Breaches
Moneylife Digital Team
10 September 2026
Market regulator Securities and Exchange Board of India (SEBI) has revised the position limits applicable to clients in the commodity derivatives segment and rationalised the penalty framework for violations of prescribed open...
