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The Securities and Exchange Board of India (Sebi) has cancelled the registration certificates of 15 investment advisers after they failed to pay the mandatory renewal fees required to keep their registrations valid. The regulator said the advisers did not pay the fees within the prescribed period despite being given an opportunity to explain the non-compliance. Sebi had issued notices to the entities seeking their responses, but no replies were received within the stipulated time. The cancellations take immediate effect, while the entities remain responsible for obligations arising from their earlier activities as registered investment advisers.
The Securities and Exchange Board of India (Sebi) has cancelled the registration certificates of 15 investment advisers for failing to pay the renewal fees required under the regulatory framework.
Under the Sebi (Investment Advisers) Regulations, 2013, registered investment advisers are required to pay a renewal fee once every five years to maintain the validity of their registration. The regulator found that the 15 advisers had not paid the applicable fees within the prescribed period.
Sebi had issued notices to the entities in June, seeking an explanation as to why action should not be taken against their registrations. The notices provided the advisers an opportunity to respond to the issue, but the regulator said no replies were received within the specified time.
As the renewal fees remained unpaid, the registrations ceased to remain in force. Sebi has consequently cancelled the registration certificates with immediate effect.
The cancellation means the entities can no longer operate under the registration granted to them as investment advisers. However, Sebi clarified that the action does not remove their responsibility for liabilities arising from activities carried out during the period when they were registered.
The former advisers will continue to be responsible for maintaining the records related to their activities, addressing investor grievances and ensuring continuity of client services wherever applicable. They will also have to comply with other regulatory requirements that may continue to apply to them despite the cancellation of their registration.
Among the 15 advisers whose registrations have been cancelled are Capvision Investment Advisor, Wise Finserv, Hardik Mahendrakumar Shukla, Sharanjit Singh, Money India Research, Exfinity Venture Partners LLP and Tanya Gupta.
The action highlights the requirement for registered investment advisers to keep their regulatory registrations current and comply with renewal requirements. While the cancellation ends the validity of their registration, their earlier dealings with investors and related regulatory responsibilities continue to remain subject to Sebi's requirements.
Source PTI
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