5paisa Capital Limited, a prominent financial services company, has announced that it has received a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI) concerning the expiry of its certificate of registration as a Research Analyst. The notice was received via email on September 10, 2025, and has prompted the company to review and respond to SEBI’s concerns promptly.
Details of the Show Cause Notice
The SCN was issued under Section 12(3) of the SEBI Act, 1992, read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2018. SEBI has asked 5paisa Capital Limited to explain why its certificate of registration as a Research Analyst should not be cancelled.
The alleged contravention pertains to Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014, which requires that a research analyst pay the prescribed fees every five years from the date of grant of the certificate to maintain the registration. 5paisa Capital Limited reportedly failed to pay the fees that became due, resulting in non-compliance with the conditions of registration stipulated under Regulation 13(i) read with the said clause.
Implications and Potential Impact
SEBI has indicated that, since the certificate has already expired due to non-payment of fees, it may proceed to cancel the registration. The financial implications of this notice on the company’s operations are currently uncertain and will depend on the outcome of the response submitted by 5paisa Capital Limited.
The company has affirmed that it will promptly respond to the show cause notice and keep the stock exchanges informed of any material developments. 5paisa Capital Limited also reiterated its commitment to high standards of corporate governance and to continuing disclosures in compliance with the SEBI Listing Regulations.
Regulatory Compliance
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency and timely communication with investors and stakeholders.
Company Statement
Gourav Munjal, Whole Time Director & CFO of 5paisa Capital Limited, authorized and signed the release of this disclosure, emphasizing the company’s proactive approach in addressing regulatory matters and maintaining compliance.
Conclusion
While the SCN highlights a lapse in fee payment related to SEBI’s research analyst registration, 5paisa Capital Limited has indicated its intention to fully cooperate with SEBI and address the matter in accordance with regulatory guidelines. Investors and market participants will closely watch the developments, given the potential implications for the company’s research analyst activities and regulatory standing.
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