Market regulator SEBI on Wednesday cancelled the registration of eight investment advisers, including Karvy Investment Advisory Services Ltd and IDFC Alternatives Ltd, for failing to pay mandatory renewal fees.
The other entities whose registrations have been cancelled are Sagacis Investment Advisor, Tathastu Investment Adviser, Quant Capital, Arkanis Capital, IRA Wealth Advisor and Indianivesh Investment Managers.
Under the SEBI (Investment Advisers) Regulations, 2013, registered investment advisers are required to pay a renewal fee every five years to keep their registration valid. “Considering that the noticees (eight entities) have not paid the renewal fees to keep the registration in force, their certificates of registration as Investment Advisers have ceased to be in force,” SEBI said in its order.
Accordingly, the regulator cancelled the certificates of registration as Investment Advisers of these entities with immediate effect. “The main purpose of cancellation of certificates of registration, as Investment Advisers, of the noticees is to prevent the misuse of their expired certificates of registration with SEBI by unaware investors,” the regulator added.It clarified that cancellation of registration does not absolve the entities of liabilities arising from their past activities as registered investment advisers.
They will continue to remain responsible for maintaining records, addressing investor grievances, ensuring continuity of client services, and complying with other regulatory requirements, if applicable.