The Securities and Exchange Board of India (SEBI) has cancelled the registrations of 11 research analysts for failing to pay mandatory renewal fees, in a move aimed at removing inactive market intermediaries and preventing misuse of expired regulatory licences. The regulator said only entities with valid and active registrations should continue providing research analyst services in the securities market.

In an order issued on Tuesday, SEBI said the registrations of the affected research analysts had ceased to remain valid after they failed to pay the renewal fees required every five years under the SEBI (Research Analysts) Regulations, 2014. The regulator stated that cancellation was necessary to ensure compliance with registration requirements and maintain transparency in the financial markets.

The cancelled registrations include companies such as 24 Carat Financial Services, Lakshmishree Investment & Securities Pvt. Ltd., PCS Securities Ltd. and Bansal Finstock Pvt. Ltd., along with seven individual research analysts. SEBI noted that the fee defaults had continued for different periods, with some cases involving unpaid renewals dating back to 2020.

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SEBI initiated summary proceedings under the Intermediaries Regulations and issued notices to the concerned entities, asking them to explain why their registrations should not be suspended or cancelled. According to the regulator, three entities did not respond to the notices, while eight others informed SEBI that their registrations could be cancelled.

The regulator said that since the mandatory renewal fees were not paid, the registrations had already stopped being in force and were liable for cancellation under Section 12(3) of the SEBI Act along with Regulation 30A of the SEBI (Intermediaries) Regulations. The action is part of SEBI’s efforts to ensure that only compliant and active participants operate within the securities market.

SEBI clarified that cancellation of registration does not remove any legal or regulatory responsibilities arising from activities carried out while the entities were registered research analysts. The affected entities have been directed to preserve records, resolve pending investor complaints, transfer client records, funds or securities where applicable, and continue fulfilling all obligations linked to their previous operations.

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