SEBI Cancels Registration of 68 Investment Advisers Over Fee Defaults
In a major regulatory action, the Securities and Exchange Board of India (SEBI) has cancelled the registration certificates of 68 investment advisers for non-payment of renewal fees.
Key Takeaways
- 68 investment advisers lose SEBI registration for fee non-payment
- Registration certificates had already expired due to non-renewal
- Action prevents potential misuse of expired certificates
- Multiple show-cause notices issued between February-June 2024
Regulatory Action Details
SEBI’s Designated Authority Soma Majumder formally cancelled the registrations in an order issued on Thursday. The regulator stated that the certificates were being cancelled under the Intermediaries Regulations, 2008.
“…of the Intermediaries Regulations, 2008, hereby cancel the certificates of registration as Investment Advisers of Noticees No 1 to 68,” Sebi’s Designated Authority Soma Majumder said in the order.
Affected Entities
The list of cancelled investment advisers includes prominent names such as:
- Truenorth Labs Pvt Ltd
- Equity Mantra
- Saurabh Mundra
- Sheetal Agrawal
- Ateet Hemant Wagh
- Getbasis Securities and Technologies India Pvt Ltd
- Lucid Technologies
- Avenue Venture Partners Investment Adviser LLP
Regulatory Framework
Under SEBI’s Investment Advisers rules, all registered advisers must pay renewal fees every five years from their initial registration date. The regulator noted that despite multiple reminders, the affected entities failed to comply with this mandatory requirement.
SEBI had issued several show-cause notices to these entities between February and June 2024, giving them opportunities to rectify the situation.
Investor Protection Measure
The market watchdog emphasized that since the registration certificates had already expired, the cancellations were necessary to prevent potential misuse. This action protects unsuspecting investors from dealing with entities holding invalid registrations.
“Since the certificates of registration of the noticees have already expired, I find that the certificates of registration as Investment Adviser, granted to the Noticees No 1 to 68, should be cancelled under the Intermediaries Regulations, 2008,” Majumder said in the order.
