Authority: Deputy General Manager, Market Intermediaries Regulation and Supervision Department, Securities and Exchange Board of India (SEBI)

Order Date: February 24, 2025

Case Overview

The Securities and Exchange Board of India (SEBI) has issued a show cause notice to Vishesh Capital Private Limited, a SEBI-registered Research Analyst holding certificate number INH000001733 since September 22, 2015. The proceedings have been initiated under Section 12(3) of the SEBI Act, 1992 read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008 (Summary Proceedings).

The principal allegation is that Vishesh Capital has failed to pay the mandatory renewal fees required every five years to keep its Research Analyst registration in force. According to Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014, a research analyst must pay fees every five years from the date of grant of registration, within three months before the expiry of the period for which fee has been paid. Due to this non-payment, the company has ceased to satisfy the condition of registration stipulated in Regulation 13(i) read with Clause 3 of Second Schedule of SEBI (Research Analyst) Regulations, 2014, resulting in the expiry of its certificate of registration.

SEBI considers it desirable to cancel the already-expired certificate of registration and has invoked summary proceedings under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008, which specifically applies to persons who fail to pay fees to the Board as required by relevant regulations.

Final Outcome

Vishesh Capital is required to submit a written response with supporting documentary evidence within twenty-one calendar days from the date of receipt of this notice. The response must be sent to Ram Rudra Murari, Deputy General Manager at SEBI Bhavan II, Plot No. C-7, G Block, Opp. NSE Building, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051, with a soft copy emailed to rishik@sebi.gov.in in MS-WORD format. No opportunity for personal hearing will be granted. If no response is received within the specified period, the matter will be proceeded ex-parte based on available record. SEBI will pass an appropriate order of cancellation or suspension of the certificate of registration or any other order as deemed fit within twenty-one calendar days after receiving submissions or after the response period expires.

Topics: SEBI Enforcement, Research Analyst Compliance, Registration Cancellation