New Delhi, Markets regulator Sebi has cancelled the registration certificates of 34 investment advisers after they failed to pay the mandatory renewal fees.
Under the Sebi (Investment Advisers) Regulations, 2013, registered investment advisers are required to pay a renewal fee every five years to keep their registration valid.
Sebi found that the 34 advisers had failed to pay the renewal fees within the stipulated period.
The regulator issued notices to these entities in June, asking them to explain why their registrations should not be suspended or cancelled. However, no replies were received within the prescribed time.
In its order dated July 21, Sebi said the registrations had ceased to remain in force due to non-payment of renewal fees and, therefore, cancelled their certificates with immediate effect.
The regulator clarified that cancellation of registration does not absolve the entities of liabilities arising from their past activities as registered investment advisers.
They will continue to remain responsible for maintaining records, addressing investor grievances, ensuring continuity of client services, and complying with other regulatory requirements, if applicable.
Among the 34 investment advisers whose registrations were cancelled are Aishva Financial Services Private Ltd, Algo Systems, Candyfloss Investment Advisors, CapitalVia Global Research Ltd, Prosper Research and Investment Advisors, The GRS Solution and Tradecure Financial Research.
In a separate order, the regulator also cancelled the registration certificates of 11 research analysts for failing to pay mandatory renewal fees required to keep their registrations in force.
The regulator said registered research analysts are required to pay renewal fees every five years.
While three of the entities did not respond to the show-cause notices issued by Sebi, the remaining eight requested cancellation of their registrations. Accordingly, the regulator cancelled their registration certificates with immediate effect.
