In a major enforcement move, the Securities and Exchange Board of India (SEBI) has cancelled the registration certificates of 68 Investment Advisers (IAs) for failing to pay the mandatory renewal fees due every five years under governing regulations.
The order, issued by SEBI’s Designated Authority Soma Majumdar, highlights that despite multiple reminders and formal notices, the advisers did not comply with the renewal requirement. As a result, their registrations had already lapsed, but the non-compliant entities continued to appear active in SEBI’s records—posing a risk of misleading investors.
The cancelled list includes both individuals and companies such as Truenorth Labs Pvt Ltd, Equity Mantra, Saurabh Mundra, Sheetal Agrawal, Ateet Hemant Wagh, Getbasis Securities and Technologies India Pvt Ltd, Lucid Technologies, and Avenue Venture Partners Investment Adviser LLP, among others.
https://the420.in/fcrf-certified-grc-professional-program-governance-risk-compliance-training-india/
What the SEBI Rules Mandate
Under the SEBI (Investment Advisers) Regulations, 2013:
- Every registered IA must renew registration every five years
- The IA must pay renewal fees before expiry of the validity period
SEBI noted that all 68 entities allowed their registration to expire and still failed to submit the dues even after the regulator communicated the deadline and its consequences in advance.
The order states that continuing display of these entities as “registered” could potentially mislead retail investors seeking legitimate advisory services.
Notices Ignored Despite Adequate Time
The regulator said that between February and June 2025, defaulting advisers were:
- Issued show-cause notices
- Sent multiple reminders
- Given a final opportunity to comply
However, none of the notices elicited payment or a satisfactory explanation.
“Since the registration certificates have expired and there is continuous non-compliance with regulatory obligations, cancellation has become necessary to safeguard the interest of investors,” the order emphasised.
How This Impacts Investors
Following cancellation:
- These entities cannot legally provide investment advisory services
- Investors must verify current SEBI registration status before availing any advice
- Any misconduct may be reported via the SEBI SCORES grievance portal
Experts believe the move sends a clear message to the financial advisory ecosystem that no regulatory lapse will be tolerated.
Rising Complaints Trigger Tightened Action
SEBI has been receiving an increasing number of complaints related to:
- Unregistered advisory
- Pump-and-dump market schemes
- Misleading profit claims via social media
- Paid tip and signal groups luring investors into risky trades
With the investment advisory industry witnessing rapid expansion, the regulator has been stepping up market surveillance and enforcement to curb mis-selling and financial fraud.
What’s Next: Stricter Controls Likely
Officials indicate that SEBI may initiate penalty proceedings, and in severe cases, criminal action for unauthorized advisory services even after cancellation.
Analysts say the latest orders will push the advisory community towards:
- Higher professional standards
- Robust compliance culture
- Better protection of retail investors, who are often vulnerable to misinformation
