SEBI Cracks Down: 34 Investment Advisors See Registrations Cancelled Over Missed Renewal Fee Payments

SEBI Cracks Down: 34 Investment Advisors See Registrations Cancelled Over Missed Renewal Fee Payments​

The Securities and Exchange Board of India (SEBI) has issued a stringent order leading to the cancellation of registration certificates for 34 Investment Advisers. The action follows a detailed examination process initiated due to the non-payment of mandatory renewal fees required under SEBI regulations.

This significant regulatory measure underscores SEBI's commitment to maintaining compliance and accountability within the investment advisory sector in India. All involved parties, identified across various company and proprietor structures, have been issued the cancellation order effective immediately.

Regulatory Non-Compliance as the Basis for Cancellation​

The core reason for the cancellations lies in a breach of the requirements stipulated by SEBI (Investment Advisers) Regulations, 2013. These regulations mandate that every registered Investment Adviser must pay a renewal fee every five years from the date of their original registration.

SEBI confirmed that all 34 Noticees failed to meet this crucial compliance requirement. The non-payment of these fees rendered their respective Certificates of Registration as Investment Advisers non-operational, triggering Summary Proceedings under Regulation 30A of the Intermediaries Regulations, 2008 and Section 12(3) of the SEBI Act, 1992.

Details of the Cancellation Order​

The order details concern a group of advisers including AISHVA FINANCIAL SERVICES PRIVATE LIMITED (INA200015103), AJAY CHOUHAN (INA000009898), and others listed across various registration numbers. The noticees were granted prior opportunities to submit responses regarding the cancellation.

SEBI noted that despite these notices, no replies were received from any of the Noticees within the stipulated timeline. This lack of response allowed SEBI to proceed with the formal order for the cancellation or suspension of their certificates.

Continuing Liabilities and Investor Grievance Redressal​

While the Certificates of Registration have been cancelled, SEBI has clearly defined the ongoing obligations of the affected firms and individuals. The advisors who were booked are mandated to continue being liable for any action done or omitted while they operated as Investment Advisers.

Furthermore, the Noticees must ensure comprehensive record maintenance and preservation of all required documents under relevant regulations. They are also obligated to redressal of investor grievances, transfer client funds and securities, and maintain continuity of service to their clients as per SEBI directions.