5paisa receives an SCN from SEBI, proposing to cancel its registration as an investment adviser for not paying the prescribed fees under the SEBI (Investment Advisers) Regulations, 2013.
Saloni Kumari | Jun 8, 2026 |
SEBI Proposes to Cancel 5paisa’s Registration as Investment Adviser Over Non-Payment of Prescribed Fees
5paisa, in a recent intimation dated June 06, 2026, addressed to the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE), has disclosed that it has received a Show Cause Notice (SCN) issued by the Securities and Exchange Board of India (SEBI).
The notice has proposed to cancel the company’s certificate of registration as an investment adviser under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008, read with Section 12(3) of the SEBI Act, 1992. The company is being asked to specify the reason why the specified action should not be taken against it.
The company had received the said SCN through post on June 05, 2026. As per the provisions of Clause 3 of the Second Schedule of the SEBI (Investment Advisers) Regulations, 2013, every investment advisor holding a certificate of registration is required to pay the prescribed fees every five years from the date of issuance of the certificate, within 3 months before the expiry period for which the fees have been paid. This is done to ensure registration remains in force.
In this context, the statutory regulatory authority has alleged the company for not paying the prescribed fees despite holding a certificate of registration, which is an explicit violation of Regulation 13(a) read with Clause 3 of the Second Schedule of the SEBI (Investment Advisers) Regulations, 2013; hence, in consequence, the company’s registration as an investment adviser has expired.
Now, the SEBI has proposed to further cancel the company’s registration as an investment adviser, which has already expired for not paying the prescribed fees. The company has been asked to show cause for the reason why its registration should not be cancelled.
The company has disclosed the aforementioned information in pursuance of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.
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