Major Regulatory Action: SEBI Orders Cancellation of 15 Investment Adviser Certificates Due to Non-Payment of Mandatory Renewal Fees

Major Regulatory Action: SEBI Orders Cancellation of 15 Investment Adviser Certificates Due to Non-Payment of Mandatory Renewal Fees​

In a significant regulatory move, the Securities and Exchange Board of India (SEBI) has ordered the cancellation of registration certificates for fifteen designated Investment Advisers. The action comes after these firms failed to adhere to mandatory requirements under SEBI (Investment Advisers) Regulations, 2013, specifically regarding the payment of renewal fees.

The order, issued by the Chief General Manager of SEBI, confirms that these entities' certificates have ceased to be in force due to non-compliance. This decision underscores SEBI’s commitment to monitoring compliance across the intermediary sector.

Failure to Comply: SEBI Cites Non-Payment of Renewal Fees​

The foundation of the regulatory action was the lapse by the firms in paying the mandated five-year renewal fees. SEBI (Investment Advisers) Regulations, 2013 clearly stipulate that every registered Investment Adviser must pay this fee within three months before the expiry period to maintain their active registration status.

SEBI records indicate a range of non-compliance timelines for the fifteen Noticees. These firms failed to fulfill the renewal requirements across various periods, with payment deadlines ranging from 21/03/2019 and 06/06/2023 up to 08/07/2024 for Tanya Gupta (INA100013612).

The Notices were issued following the initiation of Summary Proceedings against the firms under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008. The firms were called upon to submit reasons as to why their certificates should not be cancelled or suspended.

Regulatory Action Explained Under SEBI Protocols​

The proceedings followed a defined process involving notices issued on June 02, 2026 and June 04, 2026. These notices required the firms to provide responses and supporting documentary evidence within twenty-one days of receipt.

While several Noticees, including EXFINITY VENTURE PARTNERS LLP (INA200004763) and TANYA GUPTA (INA100013612), submitted formal replies indicating they accepted cancellation, others provided general responses without submitting proof of payment for the renewal fees.

As none of the fifteen Noticees furnished documentary evidence to rebut the factual position regarding their non-payment, SEBI determined that the failure to pay the fees was established. Consequently, it was concluded that all certificates had expired and were subject to cancellation.

Immediate Implications and Continuing Liability for Affected Advisers​

In light of the proved default, SEBI utilized its powers under Section 12(3) of the SEBI Act, 1992, read with Regulation 30A of the Intermediaries Regulations, 2008, to cancel the registration certificates for all fifteen advisers. The cancelled entities include Abhishek Patel Proprietor M/s Pinnacle Financial Services (INA000001308) and Aramnish Sheikh (INA000010788).

Crucially, SEBI emphasized that the cancellation of the certificate does not absolve these Noticees from any liability. They are mandated to continue being liable for anything done or omitted to be done while operating as Investment Advisers.

Furthermore, SEBI required the firms to ensure proper record maintenance and redressal of investor grievances. The advisors must also manage the continuity of service to their clients and take necessary actions regarding pending defaults, regardless of the cancellation status.