SEBI Cancels Registrations of 12 Research Analysts, Including Religare Capital Markets

Tightening regulatory vigilance across domestic capital markets, the Securities and Exchange Board of India (SEBI) has cancelled the registration certificates of 12 research analysts and advisory entities. Headquartered in Mumbai, the market watchdog initiated statutory summary proceedings after repeated notices failed to secure mandatory statutory fee payments. Prominent market intermediaries—including Religare Capital Markets—were stripped of their authorized operating status for failing to remit required renewal fees within statutory deadlines, underscoring SEBI's strict stance on intermediary compliance.

Failure to Clear Mandatory Five-Year Renewal Dues

Under SEBI (Research Analysts) Regulations, every registered research entity and independent analyst must deposit renewal fees once every five years to retain legal standing to issue equity ratings and investment recommendations. The 12 entities defaulted on scheduled payments that fell due between May 2024 and November 2025. Despite multiple grace periods and regulatory reminders, none of the defaulting parties completed the required fee deposits, prompting the regulator to enforce summary cancellation procedures.

Entities Facing Immediate Revocation of Licenses

The comprehensive cancellation order impacts both corporate research desks and individual market practitioners across India. Alongside Religare Capital Markets, the list of penalized entities includes Indeed Research, WSA Equity and Financial Research, IndiaNivesh Securities, Espirito Santo Securities India, Magnum Capital Advisors, Sunil Kumar Dhavala, and Ravi Kiran Kulkarni. By revoking their active certificates, the market regulator has barred these entities from publishing financial research, distributing stock recommendations, or presenting themselves as registered research analysts to the investing public.

Multiple Show-Cause Notices Yielded No Documentary Proof

The enforcement action follows a prolonged sequence of procedural opportunities extended by the capital markets watchdog. SEBI issued sequential show-cause notices to the defaulting intermediaries in February 2025, May 2026, and August 2026, requiring them to show cause as to why their registration credentials should not be revoked. While the concerned entities submitted formal written responses to the notices, SEBI noted that none produced verifiable banking slips or documentary evidence refuting the non-payment of renewal fees.

Shielding Retail Investors from Expired Credentials

Detailing the rationale behind the strict measure, the order issued by SEBI Chief General Manager Soma Majumdar stressed that the cancellation is vital to insulate retail investors from potential misrepresentation. Allowing non-compliant entities to hold expired regulatory certificates creates severe risks of misleading retail market participants into relying on invalid credentials. SEBI clarified that cancellation does not absolve the entities or individuals of past liabilities, confirming that each entity remains legally accountable for all prior research reports, historical conduct, and regulatory obligations incurred during their tenure as registered intermediaries.