SEBI Issues Show Cause Notice Over 5Paisa Capital Limited's Investment Adviser Registration Status
5Paisa Capital Limited is facing scrutiny from the Securities and Exchange Board of India (SEBI) following the issuance of a Show Cause Notice (SCN). The notice questions the status of the company's certificate of registration as an Investment Adviser, which SEBI alleged has expired.The SCN was received by 5Paisa Capital Limited on June 05, 2026. SEBI sought reasons as to why the company’s Investment Adviser registration should not be cancelled or suspended under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008, and Section 12(3) of the SEBI Act, 1992.
According to details provided by the company, the allegation centers on a violation related to the prescribed fees for maintaining registration. The SCN stated that an Investment Adviser is required to pay specific fees every five years from the date of certificate grant to keep the registration active. SEBI alleged that the company failed to remit these applicable fees, leading to the conclusion that the registration had lapsed and was subject to cancellation.
The following table outlines the critical details regarding the regulatory action:
| Aspect | Details Reported by 5Paisa Capital Limited |
|---|---|
| Authority | Securities and Exchange Board of India (SEBI) |
| Nature of Action | Show Cause Notice (SCN) issued seeking reasons why Investment Adviser registration should not be cancelled or suspended. |
| Date SCN Received | June 05, 2026 |
| Alleged Violation | Failure to pay the prescribed fees every five years as required under SEBI (Investment Advisers) Regulations, 2013. |
The company stated that it is committed to addressing the matter promptly and will respond to the show cause notice. Furthermore, 5Paisa Capital Limited intends to update the stock exchanges regarding any material developments related to this regulatory action.
5PAISA Stock Price Movement
Shares of 5Paisa Capital Limited slipped by 3.31% to settle at ₹311.60 after trading closed on Friday. The stock saw a daily decline, with 46,458 shares recorded in the trade volume.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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