SEBI Cancels Registration of 39 Investment Advisers After Failure to Pay Mandatory Renewal Fees

SEBI Cancels Registration of 39 Investment Advisers After Failure to Pay Mandatory Renewal Fees​

Compliance Lapse Triggers Mass Cancellation: SEBI Revokes Certificates of 39 Investment Advisors​

The Securities and Exchange Board of India (SEBI) has issued a significant order cancelling the registration certificates of thirty-nine registered Investment Advisers. The action follows the lapse of required renewal fees as stipulated under SEBI (Investment Advisers) Regulations, 2013, forcing regulatory intervention into non-compliant entities operating in the advisory space.

The comprehensive directive was released on August 7, 2026, and pertains to agencies that failed to maintain their registration through mandatory fee payments over a five-year cycle. This move underscores SEBI's commitment to enforcing strict compliance protocols across all intermediaries.

The Regulatory Requirement Breached by Investment Advisers​

As per the regulations set forth by SEBI (Investment Advisers) Regulations, 2013, every registered Investment Adviser is required to remit a specific renewal fee every five years from the date of their initial registration with SEBI. This fee payment is fundamental to keeping the Certificates of Registration in force.

The investigation revealed that all thirty-nine Noticees failed to comply with this essential requirement. The failure to pay these recurring fees led directly to the cessation of their certificates' validity, triggering Summary Proceedings under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008.

SEBI Cancels Certificates for Non-Paying Advisers​

SEBI determined that since no written submissions or replies were received from Noticees No. (1) through (28) following notices issued in June 2026, the matter needed immediate resolution based on the regulatory defaults recorded. Conversely, Noticees No. (29) through (39) formally submitted requests for cancellation.

Consequently, SEBI exercised its authority under Section 12(3) of the SEBI Act, 1992 and Regulation 30A of the Intermediaries Regulations, 2008, leading to the cancellation of certificates for all thirty-nine entities. The cancelled parties include Investment Advisers such as Alok Barnwal (INA100002768) and Amit Arora (INA100012914).

The list of affected parties includes:

• Alok Barnwal (INA100002768)
• Amit Arora (INA100012914)
• Ankit Ujjwal (INA200014858)
• A total of 39 names, spanning various proprietorships and corporate entities.

Continued Liability Despite Cancellation​

Crucially, the SEBI order emphasizes that the cancellation of a certificate does not relieve the Noticees from their legal duties or liabilities. The board stated clearly that they must continue to be liable for anything done or omitted while operating as Investment Advisers.

SEBI stressed that this primary purpose of cancellation is "to prevent the misuse of their expired certificate of registration with SEBI on unaware investors." Therefore, while deregistered, the Noticees remain accountable for any actions initiated against them regarding violations of securities laws committed during their registered period. They are also directed to ensure the maintenance and preservation of all required records and transparency in client grievance redressal.