Motilal Oswal Research Allegations: Domestic brokerage Motilal Oswal Financial Services Ltd. has come into the limelight, this time though not to make a stock call but to clear the air. Following a huge Kaynes Technology trade that generated a mini-storm on social media, inquisitive investors were in demand to find out more, and quickly.
So Motilal Oswal released a well-crafted clarification, which reminded all that its sell-side research department and the buy-side investment managers do not have a common brain. They work with various mandates, various strategies and certainly various WhatsApp groups.
Concisely, the purchase of one team simply does not imply that the other team has to hold hands and be followers. And therewith the speculation was buried by the brokerage, or at least provided with fewer causes to remain awake.
Through misuse of social media handles, baseless rumours are being spread about research and fund management of the Motilal Oswal Group. I want to state unequivocally that these allegations are rubbish, false and completely unjustified. The ill-informed people are just creating…
— Motilal Oswal (@MrMotilalOswal) November 20, 2025
₹490-Crore Kaynes Trade Triggers MoS Alignment Debate
- Date of the Trade: On Nov. 18, the buy-side entity of Motilal Oswal sold Kaynes Tech shares worth ₹490 crore through large block trades on both the NSE and BSE, immediately after the lock-in period expired.
- Market Reaction: The stock fell over 6% intraday, raising questions among investors and market watchers about whether the sell-side’s bullish stance matched the buy-side’s actions.
- Sell-Side Rating: Motilal Oswal’s sell-side team had issued a ‘Buy’ rating on Nov. 5 with a target price of ₹8,200, suggesting a 23% upside from the previous day’s close.
- Reason for Rating: The rating was published after Kaynes Technology released its Q2 FY26 results on Nov. 4.
- Source of Speculation: The close timing between the research report and the large institutional sale triggered speculation about whether the two divisions were aligned in their decision-making.
Motilal Oswal Responds: “We Operate Independently”
Without commenting on the specific Kaynes Tech trade, Motilal Oswal, co-founder of the firm, offered a broad and firm clarification.
He reiterated that the company’s sell-side institutional equities research and its buy-side asset management teams work in independent silos.
Sell-Side: “Unbiased Market Insights”
The sell-side team, he noted, exists to provide objective, research-driven insights to clients, focusing on industry outlooks, company fundamentals, and long-term valuation frameworks. Their job is to recommend, not execute, investment decisions.
Buy-Side: “Own Philosophy, Own Risk Frameworks”
The buy-side, specifically the AMC vertical, follows a completely different playbook.
Their decisions depend on:
- Fund mandates
- Investment strategy
- Risk frameworks
- Liquidity needs
- Portfolio balancing
- Time horizon considerations
According to Oswal, the buy-side evaluates opportunities independent of the research team and can buy, hold, or sell based solely on its investment philosophy.
Why This Matters To Investors About Motilal Oswal Allegation
Here’s the simple truth: big brokerages aren’t one giant brain making perfectly coordinated moves. And this Motilal Oswal, Kaynes Tech episode is a great reminder of that. The firm’s clarification basically says, “Relax, our research team and our investment team don’t text each other before making decisions.”
So yes, one side can cheerfully put out a ‘Buy’ rating while the other quietly sells a ₹490-crore chunk, and that’s not a scandal, it’s how the system is supposed to work. For everyday investors watching the noise online, this is a gentle nudge to remember: the buy-side and sell-side may share an address, but they’re definitely not sharing strategies.
(With inputs)
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Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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