SEBI Cancels 25 Research Analyst Registrations After Non-Payment of Mandatory Renewal Fees

SEBI Cancels 25 Research Analyst Registrations After Non-Payment of Mandatory Renewal Fees​

The Securities and Exchange Board of India (SEBI) has issued a definitive order cancelling the certificates of registration for twenty-five registered Research Analysts and advisory firms. The action, taken under Section 12(3) of the SEBI Act, 1992, stems from the mandatory failure of these entities to pay requisite renewal fees as stipulated by SEBI regulations.

SEBI's order, released on August 20, 2026, addresses a significant compliance lapse among market participants. The cancellation applies to all firms and individuals listed in the official notice, including AJAY GUPTA, ANURAG JAIN, and FINQUEST SECURITIES PVT. LTD., among others.

Regulatory Requirement for Research Analysts​

Under SEBI (Research Analysts) Regulations, 2014, every registered Research Analyst is legally bound to pay a renewal fee every five years from the date of their initial registration. This clause ensures that firms maintain active compliance with SEBI's standards throughout the term of their certification.

SEBI confirmed that these analysts and entities failed to adhere to this crucial regulatory mandate. The detailed records show various registration dates, noting periods where the necessary renewal fees remained unpaid, thus invalidating the continued force of their certificates.

Proceedings Following Non-Compliance​

Following widespread non-payment of the stipulated five-year renewal fees, SEBI initiated summary proceedings against the twenty-five Noticees under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008. Notices were issued over several months to allow the firms a chance to submit submissions explaining why their certificates should not be cancelled or suspended.

While some parties submitted replies claiming they had ceased business operations, others admitted non-compliance and requested cancellation themselves. Crucially, none of the Noticees provided documentary evidence to counter the factual finding regarding the non-payment of renewal fees.

SEBI’s Cancellation Order Under Statutory Powers​

The Chief General Manager, SOMA MAJUMDER, confirmed that the procedure for initiating certificate cancellation was followed in accordance with Intermediaries Regulations, 2008. Given the expired status of their registrations due to fee default, the certificates were deemed liable for cancellation under Section 12(3) of the SEBI Act, 1992.

The order explicitly cancels the registration certificates for all twenty-five Noticees. This decisive action underscores SEBI’s stringent approach toward regulatory compliance across the financial market ecosystem.

Obligations Despite Registration Cancellation​

While the cancellation addresses the administrative lapse, the Order issued by SEBI clarifies that this does not absolve the cancelled entities of their responsibilities. The firms are mandated to continue being liable for any actions—whether committed or omitted—while operating as Research Analysts.

The Noticees must ensure they maintain and preserve all required records and documents. Furthermore, they must address outstanding investor grievances and facilitate the transfer of client funds or securities to ensure continuity of service to their clients.