SEBI cancels registration of 39 investment advisers over unpaid fees

The Enforcement Action

The Securities and Exchange Board of India (SEBI) has cancelled the certificates of registration of 39 investment advisers, in an order dated 7 August 2026 signed by Soma Majumder, Chief General Manager. The order was passed under Section 12(3) of the SEBI Act, 1992 read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008, and takes effect immediately.

The 39 entities and individuals, listed in the order as Noticees No. 1 to 39, were all registered investment advisers under the SEBI Act, 1992 and the SEBI (Investment Advisers) Regulations, 2013. Per the order, SEBI cancelled their registrations because they had not paid the five-yearly renewal fee required to keep a registration in force. The regulator is explicit that this is a lapse of registration and not, in itself, a finding that any adviser defrauded investors.

Those named in the order include Alok Barnwal, Amit Arora, Ankit Ujjwal, Chirag Gokani (proprietor of Wealthwiz Advisors), Nishant Chopra (proprietor of Dezire Research), The Equicom Financial Research Pvt. Ltd., Getclarity Fintech Services Private Limited and N2 Capital Advisory LLP, among others. SEBI recorded that the certificates of several of these advisers had already expired for want of renewal. The order states its purpose is "to prevent the misuse of their expired certificate of registration" on unaware investors.

Because 11 of the 39, Noticees No. 29 to 39, themselves asked SEBI to cancel their registration, and the remaining 28 did not contest the proceedings, there is no denial on record to report. A copy of the order has been served on each noticee and on BSE Limited, which acts as the Investment Adviser Administration and Supervisory Body.

How the Scheme Worked

This matter is not, on the face of the order, an allegation of a fraudulent scheme; it is a compliance and registration lapse, and understanding the mechanism helps investors read it correctly. Under the SEBI (Investment Advisers) Regulations, 2013, a person cannot give investment advice for consideration without holding a SEBI certificate of registration. Clause 3 of the Second Schedule to those regulations requires every registered adviser, to keep its registration in force, to "pay fee every five years, from the date of grant of certificate of registration".

According to the order, the 39 advisers did not pay that renewal fee. SEBI's tabulation lists, for each adviser, the date from which the renewal fee remained unpaid, ranging from 2020 through to 2026, meaning some registrations had lapsed years earlier. Once the renewal fee is not paid, the order records, the certificate of registration "ceased to be in force".

SEBI then initiated Summary Proceedings under Regulation 30A of the Intermediaries Regulations, 2008. Per the order, notices dated 2 June 2026 and 4 June 2026 called upon the advisers to explain, within 21 days and in writing, why their registration should not be cancelled or suspended. Regulation 30A is a documents-only process: it expressly provides that "no opportunity of personal hearing shall be granted" in such proceedings.

The responses divided the group. The order records that Noticees No. 1 to 28 filed no reply within the permitted period, which under Regulation 30A allowed SEBI to proceed on the record before it. Noticees No. 29 to 39, by their respective replies, submitted that their registration "may be cancelled by SEBI", in effect consenting to the outcome. SEBI concluded that the prescribed procedure had been followed and that, the certificates having already expired, they should be formally cancelled.

Crucially, the order preserves accountability. It states the advisers "shall continue to be liable for anything done or omitted to be done as Investment Advisers", and that cancellation "does not absolve the Noticees from any violation of the securities laws" committed while registered.

The Law Invoked

Three instruments anchor the order. Section 12(1) of the SEBI Act, 1992 makes registration mandatory for intermediaries such as investment advisers; Section 12(3) empowers SEBI to "suspend or cancel a certificate of registration" in the manner set by regulations. The order is passed under Section 12(3), read with Section 19, which lets the Board delegate its powers to an officer, here the Chief General Manager who signed the order.

Regulation 30A of the SEBI (Intermediaries) Regulations, 2008 supplies the procedure. It sets out Summary Proceedings: a notice communicating the grounds, a 21-day written-response window (extendable once by up to 15 days), no personal hearing, and a power for the competent authority to "pass an appropriate order of cancellation or suspension of the certificate of registration". Regulation 30A(10), which the order directs the advisers to follow, governs the winding-down obligations that survive cancellation.

The substantive obligation sits in the SEBI (Investment Advisers) Regulations, 2013, specifically Clause 3 of the Second Schedule, the five-yearly renewal-fee requirement whose breach triggered the proceedings. Read together, these provisions make non-payment of the renewal fee a self-executing route to a lapsed, and then cancelled, registration.

What Happens Next

For the 39 advisers, the cancellation is effective immediately, but their duties do not end with it. The order requires them to maintain and preserve records, redress investor grievances, transfer clients' records, funds or securities, and ensure continuity of service, in line with Regulation 30A(10). They also remain liable for any past conduct as registered advisers, and the order makes clear it does not shield them from any separate action under the securities laws.

For anyone still receiving advice from a name on the list, the practical effect is that the person or firm is no longer a SEBI-registered investment adviser and cannot lawfully offer advisory services for a fee. Clients should seek transfer of their records and funds and confirm the registration status of any replacement adviser.

As with any SEBI order, an aggrieved party may in the ordinary course appeal to the Securities Appellate Tribunal (SAT) under Section 15T of the SEBI Act, within the prescribed limitation period; from the SAT, a further appeal on a question of law lies to the Supreme Court. Given that many of the advisers either consented to or did not contest cancellation, contested appeals appear unlikely, but the route remains open.

What It Means

This is a housekeeping action rather than a headline enforcement case, but it carries a direct, practical lesson for investors: a registration can lapse quietly, and an adviser may keep operating on an expired or cancelled certificate. SEBI itself frames the cancellation as a step to stop the misuse of expired registrations on unaware investors. The single most useful safeguard is to verify, before you pay for advice, that your adviser holds a live SEBI registration.

That check takes minutes. SEBI publishes a searchable list of registered investment advisers on its website (sebi.gov.in), and each registration carries a unique number beginning "INA". You can match the adviser's name and INA number against the register, and be wary of anyone charging advisory fees without one, or whose number no longer appears as active. BSE Limited, named in the order as the Investment Adviser Administration and Supervisory Body, also maintains adviser records.

It is equally important not to over-read the order. As the order frames it, cancellation here flows from unpaid renewal fees, and the order itself records no finding of misconduct against these 39 advisers. Treating a compliance lapse as proof of misconduct would be unfair to the advisers and misleading to readers. The order's value for investors is as a prompt: check registration, keep your own records, and know who is, and is no longer, authorised to advise you.

FAQ

Why were these registrations cancelled?

Per the order, the registrations were cancelled for non-payment of the five-yearly renewal fee under the SEBI (Investment Advisers) Regulations, 2013. It is an administrative and compliance action; the order records no finding by SEBI that any adviser defrauded or cheated investors, and SEBI notes the cancellation does not absolve them of any separate securities-law violation.

What exactly did SEBI order?

Per the order dated 7 August 2026, SEBI cancelled the certificates of registration of 39 investment advisers, listed as Noticees No. 1 to 39, under Section 12(3) of the SEBI Act, 1992 read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008. The cancellation takes effect immediately and the order was served on the advisers and on BSE Limited.

Can the order be appealed?

Yes. A person aggrieved by a SEBI order may ordinarily appeal to the Securities Appellate Tribunal under Section 15T of the SEBI Act within the prescribed period, with a further appeal on a question of law to the Supreme Court. In this matter, several advisers consented to cancellation and others did not contest it, so contested appeals appear unlikely.

How can I check if my adviser is registered?

Use the list of registered investment advisers on sebi.gov.in and match your adviser's name and INA registration number. A valid adviser holds a live "INA"-series certificate; if the number is missing or shows as cancelled, treat any fee-charging advice with caution and verify the position before paying anything.

What should affected clients do?

If your adviser is on the list, they can no longer offer advisory services for a fee. Ask for the transfer of your records, funds or securities as the order requires, preserve your own documentation, and move to a currently registered adviser only after confirming their SEBI registration is live.

Where can I read the official order?

The order is published on SEBI's website under Enforcement, then Orders (Orders under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008), dated 7 August 2026 and signed by Chief General Manager Soma Majumder.

This report is based on the official SEBI order dated 7 August 2026 cancelling the certificates of registration of 39 investment advisers, published in SEBI's enforcement orders.