Description

SEBI issues Notice of Demand under Recovery Certificate No. 9050 of 2026 dated February 25, 2026, against Mr. Ajay Kumar Chaddha (PAN: AUGPC0559C) for operating unregistered investment advisory services in violation of SEBI (Investment Advisers) Regulations.

Summary

SEBI has issued a Notice of Demand under Recovery Certificate No. 9050 of 2026, dated February 25, 2026, against Mr. Ajay Kumar Chaddha (PAN: AUGPC0559C). The notice pertains to Mr. Chaddha’s operation of unregistered investment advisory services in violation of SEBI (Investment Advisers) Regulations, 2013. This notice demands payment of dues determined in an earlier adjudication/recovery proceeding.

Key Points

  • Recovery Certificate No. 9050 of 2026 issued against Mr. Ajay Kumar Chaddha
  • PAN of the defaulter: AUGPC0559C
  • Violation: Providing investment advisory services without obtaining registration from SEBI
  • Notice of Demand is a formal recovery mechanism used by SEBI to collect outstanding penalties or dues from defaulters
  • Issued by SEBI’s Recovery Officer under applicable SEBI recovery procedures

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing provisions of the SEBI Act and SEBI (Investment Advisers) Regulations, 2013, which require all investment advisers to be registered with SEBI before offering advisory services.

Compliance Requirements

  • Mr. Ajay Kumar Chaddha (the defaulter) is required to pay the demanded amount specified in the Recovery Certificate
  • Failure to comply may result in further recovery actions including attachment of assets and bank accounts
  • Any person offering investment advisory services must obtain SEBI registration under the SEBI (Investment Advisers) Regulations, 2013
  • Unregistered entities providing investment advice are liable to penalties and recovery proceedings

Important Dates

  • Recovery Certificate Date: February 25, 2026
  • Recovery Certificate Number: 9050 of 2026
  • Notice of Demand issued: February 25, 2026

Impact Assessment

This enforcement action is specific to an individual defaulter and has no direct market-wide or stock-specific impact. It reinforces SEBI’s ongoing enforcement of the requirement for investment advisers to be registered. Investors who may have availed advisory services from Mr. Ajay Kumar Chaddha should be aware that he was operating without SEBI registration, and any such services received may have been in violation of applicable regulations. The action signals continued regulatory vigilance against unregistered investment advisory activities.

Impact Justification

This is an individual enforcement action against an unregistered investment adviser for recovery of dues. While a serious regulatory enforcement measure, it has no broader market or stock-specific impact. It is relevant primarily as a compliance/enforcement precedent.