Description

SEBI cancels the Investment Adviser registration of CapitalVia Global Research Limited (INA200001512) following an enquiry that found multiple violations including guaranteed returns, qualification non-compliance, and fraudulent trade practices.

Summary

SEBI’s Whole Time Member issued an order under Section 12(3) of the SEBI Act, 1992 read with Regulation 27 of the SEBI (Intermediaries) Regulations, 2008, cancelling the certificate of registration of CapitalVia Global Research Limited (PAN: AADCC5782H, SEBI Reg. No. INA200001512), a registered Investment Adviser. The action follows an Enquiry Report dated December 27, 2024, submitted by the Designated Authority (DA), which recommended cancellation based on multiple non-compliances detected during an inspection covering April 1, 2020 to March 31, 2021.

Key Points

  • CapitalVia Global Research Limited was registered as an Investment Adviser with SEBI under registration number INA200001512.
  • An inspection for the period April 1, 2020 to March 31, 2021 identified multiple violations; findings were shared with the Noticee on March 17, 2022.
  • The Designated Authority submitted its Enquiry Report on December 27, 2024, recommending cancellation of the Noticee’s registration under Regulation 26 of the Intermediaries Regulations.
  • Three broad categories of violations were identified: (A) non-compliance with qualification and certification requirements, (B) guaranteeing profits/returns to clients, and (C) Persons Associated with Investment Advice (PAIA)/representatives entering into contrary transactions.
  • Violations span multiple regulations: IA Regulations, CAPSM Regulations, PFUTP Regulations, and RA Regulations.

Regulatory Changes

No new regulatory changes are introduced. This order applies existing provisions:

  • SEBI (Investment Advisers) Regulations, 2013
  • SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007
  • SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
  • SEBI (Research Analysts) Regulations, 2014
  • SEBI (Intermediaries) Regulations, 2008

Compliance Requirements

  • Investment Advisers must ensure all associated persons meet qualification and certification requirements under Regulation 7(2) r/w Regulation 15(9) of IA Regulations and CAPSM Regulations.
  • IAs are prohibited from guaranteeing profits or assured returns to clients under Regulation 15(1) of IA Regulations and the Code of Conduct (Clauses 1, 2, 8, 9 of Schedule III).
  • PAIA/representatives must not enter into transactions contrary to the advice given to clients, as required under Regulation 15(7) and 15(1) of IA Regulations.
  • All IAs must ensure compliance with PFUTP Regulations, particularly Regulations 3, 4(1), 4(2)(a), 4(2)(o), and 4(2)(s).

Important Dates

  • Inspection Period: April 1, 2020 – March 31, 2021
  • Inspection Findings Shared with Noticee: March 17, 2022
  • Enquiry Report by Designated Authority: December 27, 2024
  • Order Reference: WTM/AS/MIRSD/MIRSD_SEC_3/32233/2025-26
  • Order Date: March 18, 2026

Impact Assessment

The cancellation of CapitalVia Global Research Limited’s Investment Adviser registration is a significant enforcement action. Existing clients of the firm will need to seek advisory services from other SEBI-registered investment advisers. The order reinforces SEBI’s zero-tolerance stance on guaranteed return solicitations and fraudulent practices by intermediaries. Other Investment Advisers should treat this as a strong regulatory signal to audit their compliance with qualification norms, client communication practices, and the conduct of associated persons. The invocation of PFUTP Regulations alongside IA Regulations indicates that SEBI views the violations as not merely procedural but potentially fraudulent in nature.

Impact Justification

SEBI cancellation of an Investment Adviser's registration is a severe enforcement action affecting clients who relied on advisory services; multiple violations including fraudulent practices under PFUTP Regulations signal systemic misconduct.