India's capital markets regulator SEBI cancelled the registrations of 11 research analysts after they failed to pay mandatory renewal fees, according to an order issued on Tuesday. The Securities and Exchange Board of India stated that the purpose of these cancellations is to prevent the misuse of research analyst registration certificates that are no longer valid, ensuring that only entities with active registrations continue to operate in the securities market. The action was taken under SEBI's Intermediaries Regulations, 2008, after the entities failed to renew their registrations despite being issued notices. The regulatory action was taken under the provisions of the Sebi (Intermediaries) Regulations, 2008, after the failure of the entities to update their registrations despite prior official notices.
The entities whose registrations have been cancelled include 24 Carat Financial Services, Bansal Finstock Pvt Ltd, Sagar Shah, Manoj Asok Kumar, Amar Kumar Srivastava, Yash Utmani and Lakshmishree Investment & Securities Pvt Ltd., along with seven individual research analysts. According to the order, the renewal fees had remained unpaid for varying periods, with some defaults dating back to 2020. SEBI initiated summary proceedings under the Intermediaries Regulations and issued notices asking the entities to explain why their registrations should not be suspended or cancelled. However, none of the noticees responded within the stipulated period, prompting the regulator to act decisively. The market regulator observed that these 11 entities failed to pay the prescribed fees after their respective due dates, which fell between March 2020 and October 2025.
SEBI stated that since the mandatory renewal fees had not been paid, the registrations had already ceased to be in force and were liable to be cancelled under Section 12(3) of the SEBI Act read with Regulation 30A of the SEBI (Intermediaries) Regulations. Under SEBI norms, a registered research analyst is required to pay the renewal fee every five years from the date of registration to keep the certificate valid. The cancellations are part of SEBI's broader effort to remove inactive intermediaries and prevent misuse of expired regulatory licences under the SEBI (Research Analysts) Regulations, 2014.
SEBI clarified that cancellation of registration does not extinguish any liability arising from acts or omissions while the entities were registered as research analysts. The regulator directed the cancelled entities to preserve records, address pending investor grievances, transfer client records, funds or securities where required, and ensure continuity of obligations. The regulator also clarified that despite the cancellation, the entities would continue to remain "liable for anything done or omitted to be done as Research Analysts". To allow them an opportunity to clarify their position, SEBI had issued them show-cause notices in February 2025 as well as in May and June of this year, directing the entities to explain why their registrations should not be suspended or cancelled. However, due to a complete lack of response from any of the noticees within the stipulated time period, the market watchdog proceeded with the cancellation of the certificates of these 11 entities.
