Description

SEBI cancels registration certificates of 13 Investment Advisers who failed to pay mandatory renewal fees within prescribed timelines.

Summary

SEBI has issued an order under Section 12(3) of the SEBI Act, 1992 cancelling the registration certificates of 13 Investment Advisers who failed to pay mandatory renewal fees. The affected advisers had registration periods expiring between August 2018 and November 2024, and despite being issued show cause notices in March and April 2025, they failed to comply with renewal fee payment requirements as mandated under SEBI (Investment Advisers) Regulation, 2013.

Key Points

  • 13 Investment Advisers have had their registration certificates cancelled
  • Non-payment of renewal fees ranging from August 2018 to November 2024
  • Renewal fees must be paid every five years from registration date
  • Payment deadline is within three months before expiry of existing registration period
  • Show cause notices were issued in March and April 2025 before final cancellation
  • Affected advisers include both individual and corporate entities

Regulatory Changes

No new regulatory changes introduced. This order enforces existing provisions under SEBI (Investment Advisers) Regulation, 2013, specifically Clause 3 of Second Schedule regarding mandatory renewal fee payments.

Compliance Requirements

  • All registered Investment Advisers must pay renewal fees every five years from registration date
  • Payment must be made within three months before expiry of current registration period
  • Failure to pay renewal fees results in automatic cancellation proceedings
  • Investment Advisers must maintain current registration status to continue operations

Important Dates

  • Registration Expiry Dates: Various dates from August 2018 to November 2024
  • Show Cause Notices: March 03, 2025 and April 04, 2025
  • Order Date: July 2025
  • Renewal Cycle: Every 5 years from initial registration date

Impact Assessment

The cancellation affects 13 Investment Advisers across different registration periods, indicating ongoing compliance issues within the industry. This enforcement action reinforces SEBI’s commitment to maintaining regulatory standards and ensures only compliant advisers remain registered. Clients of these cancelled advisers will need to engage with properly registered Investment Advisers for continued services. The action serves as a reminder to all Investment Advisers about mandatory renewal compliance requirements.

Impact Justification

Affects 13 Investment Advisers but limited to non-compliance with renewal requirements rather than market-wide changes