Sebi Cancels 18 Investment Adviser Registrations

New Delhi, Sep 10 (PTI) Markets regulator Sebi on Wednesday cancelled the registration of 18 investment advisers for failing to pay renewal fees, a statutory requirement under its regulations.

"...of the intermediaries regulations, 2008, hereby cancel the certificate of registration of investment adviser of the noticee No 1 to 18," Sebi's General Manager Soma Majumder said in the order.

The list of cancelled entities includes Paladin Capital Management LLP, Vishal Bansal, Nimit Aggarwal, Algoanalytics Financial Consultancy, Shah Investor's Home, AGAcquisitions Markets, Nidhi Consultants, Dharmesh Parmar, Abhinay Jain, and Samirkumar Jha, among others.

According to Sebi's IA (Investment Advisers) rules, every registered investment adviser must pay renewal fees every five years, within three months before expiry of the existing registration to keep the licence active.

The regulator noted that the advisers failed to make such payments despite being informed about the lapse. Sebi issued several show-cause notices to the entities between February and June this year.

The market watchdog observed that since the certificates had already expired, the cancellations were necessary to prevent any possible misuse of the registrations by misleading unsuspecting investors.

The order also made it clear that the cancellation does not absolve the advisers of past liabilities.

"Irrespective of the cancellation, the respective noticees shall continue to be liable for anything done or omitted to be done as Investment Adviser," the order said.

The investment advisers have been directed to preserve records, redress pending investor grievances, ensure continuity of client services, and comply with the transfer of funds or securities where required.