Sebi Cancels Registrations of 68 Investment Advisers for Fee Lapse

The Securities and Exchange Board of India (Sebi) has cancelled the registrations of 68 investment advisers due to their failure to pay the required renewal fees. On November 27, 2023, Sebi’s Designated Authority, Soma Majumder, issued the order, citing the Intermediaries Regulations of 2008. This action aims to safeguard investors by preventing potential misuse of expired certifications.

The list of affected entities includes notable names such as Truenorth Labs Pvt Ltd, Equity Mantra, and Avenue Venture Partners Investment Adviser LLP. Other advisers whose registrations were revoked include Saurabh Mundra, Sheetal Agrawal, Ateet Hemant Wagh, Getbasis Securities and Technologies India Pvt Ltd, and Lucid Technologies.

Under Sebi’s rules for investment advisers, each registered adviser must pay a renewal fee every five years from the date of registration. Despite being notified about their outstanding payments, these advisers failed to comply with the regulations. Between February and June 2023, Sebi issued multiple show-cause notices to the advisers, highlighting their non-compliance.

Sebi’s order emphasized the necessity of cancelling the registrations to protect investors. “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 1 to 68, should be cancelled under the Intermediaries Regulations, 2008,” Majumder stated in the official order.

This decisive move by Sebi underscores the regulatory body’s commitment to maintaining the integrity of the capital markets. By ensuring that only compliant advisers operate, Sebi aims to foster a safer investment environment for the public. The cancellation of these registrations serves as a reminder to all investment advisers of their obligation to adhere to regulatory requirements.