P.S. Dinesh Kumar, Presiding Officer

This appeal is directed against order dated February 20, 2026, passed by the AO1, SEBI2 imposing a penalty of Rs.5 Lakh on the appellant under Section 15EB of the SEBI Act, 19923 for violation of Regulations 7(1)(a) and 7(2) of the SEBI (IA) Regulations, 20134.

2. Brief facts of the case are:

                          a) Appellant, Chenthil R Iyer, was a SEBI registered investment adviser. His registration expired in November 2022 for non-payment of renewal fees. SEBI initiated summary proceedings and observed that the appellant was continuing as an investment adviser, even after expiry of registration.

                          Adjudicating Officer Securities and Exchange Board of India Securities and Exchange Board of India Act, 1992 SEBI (Investment Advisers) Regulations, 2013

                          b) SEBI's examination revealed that appellant's NISM5 certificate had also expired on April 1, 2022 and the appellant had continued providing the investment advisory services and collecting fees.

                          c) Accordingly, an SCN6 dated January 29, 2026 was issued. Appellant filed his reply and did not wish to avail personal hearing. SEBI, after considering his reply, has passed the impugned order.

3. We have heard Mr. Abhishek Mishra, PCS for the appellant and Mr. Ravishekhar Pandey, learned Advocate for the SEBI.

4. Mr. Mishra for the appellant submitted that non-renewal of NISM certificate and RIA7 license was not deliberate. It occurred due to 'slip of mind'. In 2018, appellant had obtained good percentile in NISM certification. During COVID-19, appellant shifted to Chennai and he was busy taking care of his sick father, who ultimately passed away in 2023. Appellant missed appearing for NISM certification examination due to bona fide reasons. Mere absence of certificate for 3 years does not make him ineligible to provide advisory services.

5. He further submitted that the violation of IA Regulations was procedural or technical in nature, which occurred due to administrative oversight and there is no fraudulent intention to National Institute of Securities Market Show Cause Notice Registered Investment Adviser deceit the clients. He prayed that this Tribunal may take a lenient view and allow this appeal with a warning. He relied on Religare Securities Limited v. SEBI8, Piramal Enterprises Limited v. SEBI9 and earlier adjudication orders of SEBI in the matter of Gaurav Sarda10 and Options King Research Analyst-Proprietor Sunil Suklal Pawar11.

6. In reply, Mr. Ravishekhar Pandey for SEBI submitted that as a registered adviser, appellant is duty bound to have a valid NISM certificate. Appellant has not obtained the NISM certificate nor renewed RIA12 certificate. Hence, there is no error in the impugned order.

7. We have carefully considered the rival contentions and perused the records.

8. Admitted position is, appellant has not obtained NISM certification and not renewed his investment advisory registration. IA Regulations requires a registered investment adviser to have a valid NISM certificate. The relevant provision reads thus:

                          Appeal No.23 of 2011 decided on 16.07.2019 by the Securities Appellate Tribunal, Mumbai Appeal No.466 of 2016 decided on 15.05.2019 by the Securities Appellate Tribunal, Mumbai Adjudication Order No.Order/SM/S./2023-24/29695, Dated 26.10.2023 Adjudication Order No.Order/AN/SM/2025-26/31564 Dated 30.07.2025 Registered Investment Adviser Regulation 7 (1) and (2) "7.(1) An individual investment adviser or a principal officer of a non-individual investment adviser registered as an investment adviser under these regulations shall have the following minimum qualification, at all times:

                          (a) A professional qualification or graduate degree or postgraduate degree or postgraduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital markets, banking, insurance or actuarial science or other financial services as may be specified from a university or an institution recognized by the Central Government or any State Government or a recognized foreign university or institution or association or a professional qualification by completing a Post Graduate Program in the Securities Market (Investment Advisory) from NISM of a duration not less than one year or a professional qualification by obtaining a CFA Charter from the CFA Institute;

                          (2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations, persons associated with investment advice, and in the case of an investment adviser being a partnership firm, the partners thereof who are engaged in providing investment advice, shall have at all times have relevant NISM certification as specified by the Board from time to time:

                          Provided that a fresh relevant NISM certification as specified by the Board from time to time shall be obtained before the expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements."

                          (Emphasis Supplied)

9. The impugned order also records that during the course of examination proceedings, appellant was specifically informed about NISM certification, yet, appellant failed to obtain one.

10. It is further recorded in the impugned order that appellant collected a sum of Rs.46,86,601, whilst he did not possess a valid registration. Hence, no exception can be taken to the impugned order imposing a penalty of Rs.5 Lakhs. The appeal fails and it is accordingly dismissed.

11. Pending interlocutory application(s), if any, stand disposed of.

12. No costs.