SEBI Cancels Wealthmax Solutions Investment Adviser Registration For Fee, NISM Certification, BASL Lapses

The Securities and Exchange Board of India (SEBI) has cancelled the registration of Wealthmax Solutions Investment Adviser (Proprietor: Piyush Jain) after finding that it failed to pay renewal fees, renew its mandatory NISM certification, and obtain BSE Administration & Supervision Limited (BASL) membership required to continue as an investment adviser.

The order was passed by Designated Authority Vikas Sukhwal

The market regulator noted that the renewal fees for the IA's registration, which was granted on June 06, 2018, fell due on June 05, 2023, but were not paid.

It further recorded that the NISM certification of the proprietor had expired on April 01, 2022 and was not renewed thereafter. Additionally, the Noticee failed to obtain mandatory membership in BASL, which is required for all registered investment advisers.

Upon observing these lapses, SEBI issued multiple show-cause notices through physical and electronic modes, calling upon the Noticee to explain why its registration should not be cancelled. The Noticee initially failed to respond to the notices but later submitted a reply stating that it had ceased advisory activities since 2022 under the bona fide belief that its registration had already lapsed or been cancelled.

The Noticee submitted that this belief was based on a communication from BASL regarding non-payment of renewal fees and the removal of its name from the SEBI Investment Adviser portal.

The Authority noted that the submissions indicate that the Noticee had no intention to carry on the business of an investment adviser. It observed:

“I note from the reply of the Noticee that it has not contended that it has complied with the aforementioned provisions of law. Rather, the submission of the Noticee is that it was under the impression that its Certificate of Registration has already been cancelled and that it has stopped providing IA services since 2022. Further, the Noticee has also not listed any attempt to renew its registration nor has it shown any inclination to continue as IA.”

Holding that the violations stood established, the Authority found it to be a fit case for cancellation. Accordingly, SEBI cancelled its certificate of registration as an investment adviser with immediate effect.