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News Topical, Digital Desk : Market regulator Securities and Exchange Board of India (SEBI) on Wednesday cancelled the registration of 18 investment advisors. These advisors had not deposited the mandatory renewal fees under SEBI rules. The cancelled advisors include names like Paladin Capital Management LLP, Vishal Bansal, Nimit Agarwal, Algoanalytics Financial Consultancy, Shah Investor Home, AGAcquisitions Markets, Nidhi Consultants, Dharmesh Parmar, Abhinay Jain and Sameer Kumar Jha.
SEBI General Manager Soma Majumdar said in the order, "Under the Intermediaries Regulations, 2008, the registration certificates of investment advisers of noticee numbers 1 to 18 are cancelled."
Renewal fee rules
According to SEBI's Investment Advisor Rules, every registered investment adviser has to deposit renewal fees every five years to keep his license active. This fee has to be paid three months before the expiry of the current registration.
SEBI found that these advisers did not deposit the fee even though they were informed about this deficiency. SEBI had issued several show-cause notices to these institutions between February and June this year. Reasons for cancellation of registration SEBI observed that the certifications of these advisers had already expired. It was necessary to cancel the registration so that the possibility of misusing them to mislead unsuspecting investors could be prevented. Old responsibilities retained The order also clarified that despite the cancellation of registration, the old responsibilities of these advisers will not end. The order said, "Notwithstanding the cancellation of registration, the concerned noticees will continue to be responsible for any work done or not done as investment advisors." Instructions to advisors SEBI has instructed these investment advisors to maintain records, resolve pending investor complaints, ensure continuity of client services and follow the transfer of funds or securities when required.
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