The regulator's action follows enquiry proceedings in which the designated authority (DA) found that Eqwires Research Analyst had misled clients by giving assurances regarding fixed returns and had failed to comply with applicable rules, regulations and circulars. The DA had recommended regulatory censure. Eqwires Research Analyst had already been subjected to a ₹6 lakh monetary penalty, which it paid pursuant to a separate adjudication order dated 13 August 2025.
SEBI's findings also covered the manner in which Eqwires Research Analyst presented itself to clients. The regulator noted that its website described the entity as a stock advisory company and as a ‘best investment advisor in India’. Similar descriptions appeared in its Telegram communications, which had around 9,800 subscribers at the time and later exceeded 10,000.
According to SEBI, Eqwires Research Analyst recommendations included trading calls such as buy or sell recommendations with stop-loss and target prices. The regulator held that research recommendations constitute research reports under the Research Analysts Regulations and, therefore, are subject to prescribed disclosure and content requirements. SEBI observed that the recommendations did not contain the disclosures required under Regulation 19 and did not define terms as required under Regulation 20(1).
SEBI also examined Eqwires Research Analyst's bank account transactions, in which payment narrations included descriptions such as 'advisory service', 'market tips', and 'fees'. Based on the material before it, the regulator concluded that Eqwires Research Analyst was holding itself out as an Investment Adviser and engaging in activities that, according to its findings, went beyond those permissible for a research analyst.
Another issue concerned the handling of a client's trading account. SEBI found that the Eqwires Research Analyst had obtained an authorisation letter from a client and had handled her trading account to execute trades. The regulator held that an RA was not permitted to operate or handle clients' trading accounts and rejected Eqwires Research Analyst's contention that the client had voluntarily provided the authorisation.
SEBI also examined testimonials displayed on Eqwires Research Analyst website and social-media platforms. The order states that people shown as clients in testimonials were not actually clients of Eqwires Research Analyst, and that the entity had admitted that its social media presence was managed by paid agents. The regulator found that publishing such testimonials and reviews amounted to knowing misrepresentation and concealment of material facts intended to attract potential clients.
During the proceedings, Eqwires Research Analyst argued that it had operated only as an RA and provided technical, one-to-many research recommendations. It also submitted that references to itself as an investment adviser on its website were inadvertent and that the FIU portal did not provide an appropriate Research Analyst category when it registered. It further argued that it had removed the disputed testimonials and social-media content after SEBI's inspection.
The proceedings also considered a proposed refund of ₹2.29 crore collected by Eqwires Research Analyst as fees. SEBI noted that there were no quantifiable figures available to establish the disproportionate gain or exact monetary loss suffered by clients. Consequently, the proposed action under Regulation 35 relating to refund of fees was not sustained.
SEBI noted that Eqwires had already complied with the August 2025 adjudication order and paid the ₹6 lakh penalty. However, it held that adjudication and enquiry proceedings are separate and independent and that regulatory directions could still be issued under Section 12(3) of the SEBI Act.
Accordingly, SEBI's quasi-judicial authority (QJA) Biju S issued a regulatory censure against Eqwires Research Analyst under Section 12(3) of the SEBI Act, 1992 of the SEBI (Intermediaries) Regulations, 2008.
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