Karvy, Quant Capital among 8 firms losing SEBI investment adviser registrations over unpaid fees; what does this mean?
SEBI said the action was necessary to prevent expired registration certificates from being misused to mislead unsuspecting investors.
- Nov 4, 2026,
- Updated Nov 4, 2026 8:30 PM IST
Markets regulator Securities and Exchange Board of India (SEBI) has cancelled the investment adviser registrations of eight entities, including Karvy Investment Advisory Services, Quant Capital and IDFC Alternatives, for failing to pay mandatory renewal fees.
The order, issued on November 4, 2026, takes immediate effect. SEBI said the action was necessary to prevent expired registration certificates from being misused to mislead unsuspecting investors.
Importantly, the cancellations apply specifically to the named entities' registrations as investment advisers and should not be interpreted as a blanket prohibition on other businesses operating under the same corporate brands.
Why did SEBI cancel the registrations?
Under SEBI's Investment Advisers Regulations, 2013, registered advisers must pay renewal fees every five years to maintain their registrations.
The regulator found that all eight entities had failed to meet this requirement despite being granted registration certificates.
Karvy Investment Advisory Services, registered on July 3, 2014, had not paid renewal fees since July 3, 2019.
Quant Capital Private Limited, registered on June 28, 2016, had outstanding renewal fees from June 28, 2021.
Tathastu Investment Adviser Private Limited had the earliest outstanding renewal date, December 4, 2018.
SEBI initiated summary proceedings and issued notices asking the entities to explain why their registrations should not be suspended or cancelled.
Six entities failed to respond, while IDFC Alternatives and Indianivesh Investment Managers requested cancellation of their registrations.
Which investment advisers lost registration?
The eight entities are:
- Karvy Investment Advisory Services Limited
- Sagacis Investment Advisor
- Tathastu Investment Adviser Private Limited
- Quant Capital Private Limited
- Arkanis Capital
- IRA Wealth Advisor
- IDFC Alternatives Limited
- Indianivesh Investment Managers Pvt. Ltd.
SEBI concluded that their investment adviser registrations had ceased to remain in force because of unpaid renewal fees.
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What does this mean for investors?
The cancellations mean the affected entities cannot rely on these registrations to operate as SEBI-registered investment advisers.
However, cancellation does not eliminate obligations arising from their earlier advisory activities.
SEBI directed the entities to ensure preservation of records, resolution of investor grievances, transfer of client funds or securities, and continuity of services, wherever applicable.
The regulator also clarified that the entities remain liable for past actions or omissions and could face proceedings for earlier securities-law violations.
For investors, the order reinforces the importance of checking whether an investment adviser's SEBI registration remains valid before seeking financial advice.
The order does not establish investment fraud or misappropriation of client funds. SEBI's stated basis for cancellation was non-payment of prescribed renewal fees.
ALSO READ: Sebi backs removal of long-term capital gains tax for foreign investors: Report
Markets regulator Securities and Exchange Board of India (SEBI) has cancelled the investment adviser registrations of eight entities, including Karvy Investment Advisory Services, Quant Capital and IDFC Alternatives, for failing to pay mandatory renewal fees.
The order, issued on November 4, 2026, takes immediate effect. SEBI said the action was necessary to prevent expired registration certificates from being misused to mislead unsuspecting investors.
Importantly, the cancellations apply specifically to the named entities' registrations as investment advisers and should not be interpreted as a blanket prohibition on other businesses operating under the same corporate brands.
Why did SEBI cancel the registrations?
Under SEBI's Investment Advisers Regulations, 2013, registered advisers must pay renewal fees every five years to maintain their registrations.
The regulator found that all eight entities had failed to meet this requirement despite being granted registration certificates.
Karvy Investment Advisory Services, registered on July 3, 2014, had not paid renewal fees since July 3, 2019.
Quant Capital Private Limited, registered on June 28, 2016, had outstanding renewal fees from June 28, 2021.
Tathastu Investment Adviser Private Limited had the earliest outstanding renewal date, December 4, 2018.
SEBI initiated summary proceedings and issued notices asking the entities to explain why their registrations should not be suspended or cancelled.
Six entities failed to respond, while IDFC Alternatives and Indianivesh Investment Managers requested cancellation of their registrations.
Which investment advisers lost registration?
The eight entities are:
- Karvy Investment Advisory Services Limited
- Sagacis Investment Advisor
- Tathastu Investment Adviser Private Limited
- Quant Capital Private Limited
- Arkanis Capital
- IRA Wealth Advisor
- IDFC Alternatives Limited
- Indianivesh Investment Managers Pvt. Ltd.
SEBI concluded that their investment adviser registrations had ceased to remain in force because of unpaid renewal fees.
MUST READ: Will Budget 2027 roll out red carpet for FPIs? FM Sitharaman says, 'I recognise the voice'
What does this mean for investors?
The cancellations mean the affected entities cannot rely on these registrations to operate as SEBI-registered investment advisers.
However, cancellation does not eliminate obligations arising from their earlier advisory activities.
SEBI directed the entities to ensure preservation of records, resolution of investor grievances, transfer of client funds or securities, and continuity of services, wherever applicable.
The regulator also clarified that the entities remain liable for past actions or omissions and could face proceedings for earlier securities-law violations.
For investors, the order reinforces the importance of checking whether an investment adviser's SEBI registration remains valid before seeking financial advice.
The order does not establish investment fraud or misappropriation of client funds. SEBI's stated basis for cancellation was non-payment of prescribed renewal fees.
ALSO READ: Sebi backs removal of long-term capital gains tax for foreign investors: Report