SEBI cancels registrations of 15 research analysts for non-payment of renewal fees

Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registration certificates of 15 research analysts (RAs), including individuals and entities, after they failed to pay the mandatory renewal fees required under the SEBI (Research Analysts) Regulations, 2014. The regulator said the action is intended to prevent the misuse of expired registration certificates and protect investors.

Under the regulations, every registered research analyst is required to pay a renewal fee every five years from the date of registration to keep the certificate valid. SEBI found that the 15 research analysts failed to pay the renewal fees despite their due dates falling between June 2020 and July 2024.

The registrations cancelled include those of Bipin Manilal Savla, Comfort Securities Ltd, Sudip Bandyopadhyay, Shefali Sahita, Prasenjit Kumar Paul, Arya Fin-Trade Services (India) Pvt Ltd, Ideal Associates, Kalpesh Rathi, Deepa Gupta, Abhijeet Ramachandrran, Rashi, Rahul Mukesh Randeria, Shivansh Kariwala, Krishnamurthy Sethuraman and K Karthik Raja.

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SEBI initiated summary proceedings against the research analysts in February 2025 by issuing show-cause notices asking why their registrations should not be cancelled. Although the noticees submitted responses, none could provide documentary evidence showing that the renewal fees had been paid.

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The regulator also advised the entities and individuals to voluntarily surrender their registrations through the designated BSE portal. However, none of them completed the surrender process before the final order was passed.

In its order, SEBI observed that the registration certificates had already ceased to remain in force due to non-payment of renewal fees. After following the procedure prescribed under the SEBI (Intermediaries) Regulations, 2008, the regulator concluded that cancellation of the registrations was warranted.

SEBI clarified that the cancellation of registration does not absolve the former research analysts of liabilities arising from actions taken while they were registered. They will continue to remain responsible for any past acts, omissions or regulatory violations committed during the validity of their registrations.

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The regulator also directed the affected entities and individuals to preserve all records and documents required under the regulations, address any pending investor grievances, ensure continuity of services to existing clients wherever applicable, and comply with other obligations specified under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008.

The order underscores SEBI's continued focus on ensuring regulatory compliance among registered intermediaries and maintaining investor confidence by removing entities whose registrations have lapsed due to non-compliance.