Business · India Bureau
Sebi strips registration from 15 investment advisers for non-payment of fees
India's capital markets regulator has cancelled the registration certificates of 15 investment advisers who failed to pay mandatory renewal fees. The action comes after the firms ignored formal notices issued in June.
LSN India ·
The Securities and Exchange Board of India (Sebi) on Friday moved to cancel the registrations of 15 investment advisers following their failure to remit renewal fees within the prescribed timeline. Under the Sebi (Investment Advisers) Regulations, 2013, registered investment advisers are obligated to pay renewal fees every five years to maintain their registration status.
According to the regulator, all 15 entities had defaulted on their renewal fee payments. Sebi issued formal notices to the advisers in June, calling upon them to provide written explanations for why their registrations should not be suspended or cancelled. The regulator did not receive responses from any of the entities within the stipulated response period.
Sebi subsequently determined that the registrations had automatically ceased to be valid due to non-payment and accordingly cancelled their certificates with immediate effect. The regulator clarified that while the registration cancellations take immediate effect, they do not relieve the affected entities of any liabilities or obligations arising from their activities during the period they were registered as investment advisers.