SEBI cancels registration of 34 investment advisers over unpaid fees

The Enforcement Action

The Securities and Exchange Board of India (SEBI) has cancelled the certificates of registration of 34 investment advisers, ending their authority to operate as SEBI-registered advisers with immediate effect. The order, signed by Chief General Manager Soma Majumder and dated 21 July 2026, was published on SEBI's enforcement portal in a matter titled "Order in the matter of certain Investment Advisers".

SEBI passed the order under Section 12(3) of the SEBI Act, 1992, read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008. According to the order, each of the 34 entities and individuals held a certificate of registration as an investment adviser under Section 12(1) of the SEBI Act and the SEBI (Investment Advisers) Regulations, 2013, and each had failed to pay the periodic renewal fee required to keep that registration in force.

The list SEBI named ranges from proprietary firms to companies, and includes CapitalVia Global Research Ltd, Candyfloss Investment Advisors, Prosper Research and Investment Advisors, TradeCure Financial Research, Niveshshala, Algo Systems and The GRS Solution, alongside a number of individually registered advisers. The full roster of 34 registration numbers appears in the order. SEBI recorded that no adviser filed a written reply to the notices it issued before the cancellations were confirmed.

It is worth stating at the outset what this action is and is not. The order records an administrative default, the non-payment of the five-yearly renewal fee, and does not contain any finding of fraud, mis-selling or investor loss against the named advisers. SEBI said the "main purpose" of the cancellation was to prevent misuse of an expired certificate of registration on "unaware investors".

How the Scheme Worked

Unlike most matters on the enforcement record, this order describes a compliance lapse rather than an alleged scheme to defraud. The mechanism at its centre is the renewal-fee obligation that keeps an adviser's licence live.

Under Clause 3 of the Second Schedule of the SEBI (Investment Advisers) Regulations, 2013, an investment adviser "who has been granted a certificate of registration, to keep its registration in force, shall pay fee every five years, from the date of grant of certificate of registration". The order states that each of the 34 advisers reached that five-year mark and did not pay. The individual "date from which renewal fees remains unpaid" set out in the order stretches from 2019 and 2020 for the earliest defaults to 2025 and 2026 for the most recent, meaning some registrations had been out of fee for several years before SEBI acted.

Once a renewal fee lapses, SEBI can move to strike the registration through a fast-track route. The regulator initiated Summary Proceedings under Regulation 30A of the Intermediaries Regulations, 2008, read with Section 12(3) of the SEBI Act, and issued notices dated 2 June 2026 and 4 June 2026 asking each adviser to explain, within 21 days, why its registration should not be cancelled or suspended. Regulation 30A is deliberately abbreviated: it lets the competent authority proceed on the documentary record, expressly provides that "no opportunity of personal hearing shall be granted", and requires an order within 21 days of the reply deadline.

The order records that the notices were "duly issued" but that "no replies have been received" from any of the 34 advisers by the date of the order. On that basis SEBI concluded that the certificates had "ceased to be in force" and that the procedure prescribed by the Intermediaries Regulations had been followed, clearing the way for cancellation. SEBI also made clear that cancellation does not wipe the slate: each adviser "shall continue to be liable for anything done or omitted to be done" while registered, and the order "does not absolve the Noticees from any violation of the securities laws committed by" them as registered advisers.

The Law Invoked

Three instruments frame the order, and the document cites each by name.

Section 12(3) of the SEBI Act, 1992 is the source of SEBI's power to act. It provides that "the Board may, by order, suspend or cancel a certificate of registration" in the manner set by regulations. Section 19 of the same Act, also cited, lets the Board delegate that power to its officers, which is how a Chief General Manager rather than the full Board came to sign the order.

Regulation 30A of the SEBI (Intermediaries) Regulations, 2008 supplies the procedure. Titled "Summary Proceedings", it lets a competent authority issue a notice setting out the grounds, gives the noticee 21 calendar days (extendable once by up to 15 days) to respond in writing, bars any personal hearing, and empowers the authority to "pass an appropriate order of cancellation or suspension of the certificate of registration". Sub-regulation 10, which the order directs the advisers to follow, governs the wind-down obligations that survive cancellation.

The substantive trigger is Clause 3 of the Second Schedule of the SEBI (Investment Advisers) Regulations, 2013, which fixes the five-yearly renewal-fee duty. Read together, the provisions mean a lapsed fee alone is sufficient, after due notice, to end a registration, with no allegation of misconduct required.

What Happens Next

The cancellations took effect immediately. SEBI served a copy of the order on BSE Limited in its capacity as the Investment Adviser Administration and Supervisory Body, the entity that supervises registered advisers day to day, so the change flows through to the official register.

Even a summary order is appealable. An aggrieved adviser may challenge the cancellation before the Securities Appellate Tribunal (SAT) under Section 15T of the SEBI Act within the prescribed period, and from there, on a question of law, to the Supreme Court. Because Regulation 30A allows no personal hearing, the tribunal is the first forum at which an adviser can be heard on the merits.

For the advisers themselves, the order does not simply switch off their business and stop there. SEBI directed each to arrange for the maintenance and preservation of records, the redressal of investor grievances, the transfer of client records, funds or securities, and continuity of service to existing clients, and to comply with the wind-down requirements of Regulation 30A(10). An adviser that later wished to operate again would need to satisfy SEBI's registration requirements afresh rather than simply clear the arrears.

What It Means

The practical message for investors is simpler than the statutory machinery: an adviser's SEBI registration is not permanent, and it is your job to check that it is current. A registration number printed on a website or a fee invoice proves nothing if the certificate behind it has lapsed, and SEBI said plainly that the cancellations were meant to stop exactly that kind of misuse of an expired certificate on "unaware investors".

Verifying an adviser takes minutes. SEBI publishes the list of registered investment advisers, and BSE Administration and Supervision Ltd, the supervisory body for the segment, maintains a searchable record of advisers and their registration status. Match the INA-series registration number your adviser quotes against that record, and confirm it is shown as active. If your adviser appears on the cancelled list in this order, treat the SEBI registration as no longer valid, ask for your records and any pending grievance to be settled, and consider moving to a currently registered adviser.

It bears repeating that a cancellation for unpaid renewal fees is an administrative event, not proof that an adviser wronged anyone. But the safeguard cuts one way: dealing only with a currently registered adviser is among the cheapest forms of protection an investor has, and this order is a timely reminder to use it.

FAQ

What exactly did SEBI order?

SEBI cancelled the certificates of registration of 34 investment advisers with immediate effect, using summary proceedings under Regulation 30A of the Intermediaries Regulations, 2008 read with Section 12(3) of the SEBI Act. Each adviser had failed to pay the renewal fee that keeps a registration in force, and none replied to SEBI's notices before the order was passed.

Does the cancellation mean these advisers committed fraud?

No. The order is based solely on non-payment of the five-yearly renewal fee, and it records no finding of fraud, mis-selling or investor loss. SEBI did note that cancellation does not absolve the advisers of anything they did while registered, so any past conduct can still be examined separately on its own merits.

Can the order be appealed?

Yes. A SEBI order of this kind can be appealed to the Securities Appellate Tribunal under Section 15T of the SEBI Act within the prescribed period, and onward to the Supreme Court on a question of law. Because Regulation 30A allows no personal hearing, the tribunal is the first forum for a hearing on the merits.

How can I check if my investment adviser is registered with SEBI?

Ask for the adviser's INA-series registration number and match it against SEBI's list of registered investment advisers and the record maintained by BSE Administration and Supervision Ltd, the supervisory body for advisers. Confirm the registration is shown as active, and not expired, suspended or cancelled.

What should I do if my adviser is on this cancelled list?

Treat their SEBI registration as no longer valid. Ask in writing for your records, request that any pending grievance be redressed, and ensure any funds or securities are accounted for. SEBI has directed the affected advisers to preserve records and provide continuity of service, and you may wish to engage a currently registered adviser.

Where can I read the official order?

The full order, including all 34 names and registration numbers, is published on SEBI's enforcement portal in the matter of certain Investment Advisers, dated 21 July 2026 and signed by Chief General Manager Soma Majumder.

This report is based on the official SEBI order dated 21 July 2026 in the matter of certain Investment Advisers, published on SEBI's enforcement portal.