Mumbai: The Securities and Exchange Board of India (SEBI) has cancelled the registrations of eight investment advisers, including Karvy Investment Advisory Services Ltd and IDFC Alternatives Ltd, after they failed to pay mandatory renewal fees required to maintain their licences.
The market regulator said the affected entities did not comply with the renewal fee requirements prescribed under the SEBI (Investment Advisers) Regulations, 2013, resulting in their registrations ceasing to remain in force.
Apart from Karvy Investment Advisory Services and IDFC Alternatives, the action also covers Sagacis Investment Advisor, Tathastu Investment Adviser, Quant Capital, Arkanis Capital, IRA Wealth Advisor and Indianivesh Investment Managers.
In its order, SEBI said registered investment advisers are required to pay renewal fees every five years to keep their registrations valid.
Since the eight entities failed to make the necessary payments, their certificates of registration have been cancelled with immediate effect.
The regulator said the move was aimed at preventing possible misuse of expired registration certificates and protecting investors from being misled into believing that the entities continued to hold valid SEBI authorisation.
According to SEBI, cancelling the registrations would help ensure that investors are not exposed to entities that may continue to present themselves as registered investment advisers despite their licences having lapsed.
The regulator, however, clarified that the cancellation of registration does not absolve the entities of responsibilities arising from activities undertaken while they were registered investment advisers.
The firms will continue to remain liable for maintaining records, addressing investor grievances and ensuring continuity of services to existing clients, besides complying with other applicable regulatory obligations.
The action underscores SEBI’s emphasis on regulatory compliance and investor protection, particularly in the investment advisory space where registration status plays a key role in establishing credibility and trust among investors.
(IANS)
