5paisa Capital Limited has announced the receipt of a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI) regarding the expiry of its certificate of registration as a Research Analyst. The SCN was received via email on September 10, 2025.
The Show Cause Notice was issued under Section 12(3) of the Securities and Exchange Board of India Act, 1992, read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2018. SEBI is seeking a response from the company regarding 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 a research analyst to pay the prescribed fees every five years from the date of grant of the certificate to keep the registration in force. 5paisa Capital Limited failed to pay the fees that became due, resulting in non-compliance with the conditions of registration stipulated under Regulation 13(i) read with Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014.
SEBI has indicated that the Certificate of Registration, which has already expired due to non-payment of fees, may be cancelled. The impact of the SCN on the company's financial operations will depend on the outcome, and the financial impact cannot be quantified as of the date of the disclosure.
The company has stated that it will promptly respond to the show cause notice and inform the stock exchanges of any material developments. 5paisa Capital Limited has also affirmed its commitment to adhering to the highest standards of corporate governance and will continue to make disclosures in compliance with the SEBI Listing Regulations.
The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Gourav Munjal, Whole Time Director & CFO of 5paisa Capital Limited, has signed and authorized the release of this disclosure.
The impact of the SCN on the company's financial operations will depend on the outcome, and the financial impact cannot be quantified as of the date of the disclosure.
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