New Delhi, July 23: The Securities and Exchange Board of India (SEBI) has cancelled the registration of 34 investment advisers after they failed to pay the mandatory renewal fees required under regulatory norms, reinforcing its commitment to ensuring compliance in the financial advisory sector.
The action follows provisions under the SEBI (Investment Advisers) Regulations, 2013, which require every registered investment adviser to renew their registration by paying a prescribed fee once every five years. According to the regulator, the affected entities did not complete the renewal process within the stipulated timeline, resulting in the lapse of their registrations.
Before taking the final decision, SEBI had issued show-cause notices to the concerned advisers in June, asking them to explain why their registrations should not be suspended or cancelled for non-compliance. However, none of the entities submitted a response within the prescribed period.
In an order issued on July 21, SEBI stated that the registrations had automatically ceased to remain valid because the renewal fees were not paid. Consequently, the regulator cancelled their certificates of registration with immediate effect.
The market watchdog clarified that the cancellation of registration does not free these entities from responsibilities arising from their previous operations as registered investment advisers. They will continue to be accountable for fulfilling obligations related to past clients and regulatory compliance.
SEBI said the affected firms must continue maintaining statutory records, addressing pending investor complaints, ensuring continuity of client-related services wherever applicable, and complying with any remaining legal or regulatory requirements connected to their earlier advisory activities.
Among the entities whose registrations were revoked 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, along with several other registered advisers.
In a separate enforcement action, SEBI also cancelled the registration certificates of 11 research analysts for failing to pay the mandatory renewal fees required to keep their registrations active.
The regulator noted that research analysts, like investment advisers, are required to renew their registrations every five years by paying the prescribed fee. Failure to do so results in the registration becoming invalid under the applicable regulations.
SEBI said that while three of the research analyst entities did not respond to the show-cause notices served by the regulator, the remaining eight voluntarily sought cancellation of their registrations. Based on these circumstances, the regulator cancelled all 11 registration certificates with immediate effect.
The latest action highlights SEBI’s continued focus on enforcing regulatory compliance across intermediaries operating in India’s capital markets. By ensuring that registered entities adhere to statutory renewal requirements, the regulator aims to maintain transparency, accountability and investor confidence in the financial services ecosystem.
Industry observers believe the move serves as a reminder to all registered intermediaries that procedural compliance, including timely renewal of registrations, is an essential requirement for continuing operations under the regulatory framework. Failure to meet these obligations can lead to the loss of registration and invite further regulatory scrutiny if other compliance issues emerge.
SEBI has repeatedly stressed that registration is a privilege subject to continuous compliance with its regulations. The latest cancellations underscore the regulator’s intent to uphold governance standards while ensuring that only compliant entities remain authorised to provide investment advisory and research services in the securities market.