Description

The Securities Appellate Tribunal (SAT) set aside SEBI's October 2023 order against Shivaay Investments regarding unregistered investment advisory activities, with BSE advising trading members to take note.

Summary

BSE has informed all trading members about a Securities Appellate Tribunal (SAT) order dated March 06, 2026, in the matter of unregistered investment advisory activities by Shivaay Investments (Appeal No. 266 of 2025). The SAT set aside SEBI’s earlier order dated October 25, 2023, passed by the Chief General Manager (CGM) of SEBI, quashing it with respect to the appellant, Shivaay Investments.

Key Points

  • SAT order dated March 06, 2026 set aside SEBI’s CGM order dated October 25, 2023 against Shivaay Investments
  • The matter pertains to unregistered investment advisory activities conducted by Shivaay Investments
  • This notice is issued in continuation of BSE Notice No. 20231025-31 dated October 25, 2023
  • Appeal No. 266 of 2025 was filed by Shivaay Investments before the SAT
  • Trading members are advised to take note and ensure compliance

Regulatory Changes

The SAT’s order effectively reverses SEBI’s enforcement action against Shivaay Investments for alleged unregistered investment advisory activities. The original SEBI order (October 25, 2023) issued by the CGM has been set aside specifically with respect to the appellant. This does not change the broader regulatory framework requiring investment advisors to be registered with SEBI.

Compliance Requirements

  • Trading members must take note of the SAT order dated March 06, 2026
  • Members should update their records regarding the status of the SEBI order against Shivaay Investments
  • General compliance with SEBI’s investment advisory registration requirements remains unchanged

Important Dates

  • October 25, 2023: Original SEBI CGM order against Shivaay Investments (BSE Notice No. 20231025-31)
  • March 06, 2026: SAT order setting aside the SEBI CGM order (Appeal No. 266 of 2025)
  • April 09, 2026: BSE notice issued to trading members

Impact Assessment

This circular has limited direct market impact as it pertains to the reversal of a SEBI enforcement action against a specific unregistered investment advisory entity. Trading members are primarily required to update their awareness of the changed legal status of the SEBI order. The SAT ruling in favor of Shivaay Investments does not alter the broader regulatory requirement for investment advisors to be registered with SEBI under the SEBI (Investment Advisers) Regulations.

Impact Justification

SAT order setting aside a SEBI enforcement action is notable for compliance awareness, but has limited direct market or trading impact as it pertains to a specific unregistered advisory entity.