Being an Investment Adviser is tough, specially if you are a new fee-only adviser. It takes time, effort and loads of patience to build an Investment Advisory practice true to the spirit of compliance of SEBI regulations.
Recently a registered adviser decided to surrender her license just after 2 years of registration. I also got a couple of queries from advisers who do not want to renew their registration, effectively leaving the practice.
Read more : How to renew your Investment Adviser License?
If you have decided to discontinue your investment advisory business, you can voluntary surrender the license to SEBI.
HOW DO YOU SURRENDER YOUR LICENSE?
While the decision to quit is hard, the process is relatively simple.
Here is an indicative process to surrender your license to act as an Investment Adviser:
#1 – Login to SEBI’s portal – siportal.sebi.gov.in
#2 – Click on Post Registration Activities and Select Surrender Certificate
#3 – Fill the details in the tab and submit the same.
#4 – Submit the original copy of the registration certificate along with a covering letter to SEBI’s regional office near you.
As you realise, the first 3 steps are online and the last one is offline.
Here is the information to be filled on SEBI’s portal:
#1 – Reasons for surrender
Give reasons as to why you want to surrender the certificate. Yes, you can be frank with your reasons.
#2 – List of all activities that are being carried out including those activities that do not relate to the securities market
You have to mentioned the details of the activities you carried out under the Investment Adviser License. It can be a brief write up on your activities as an Investment Adviser. You also have to mentioned the activities carried out by you even though they do not relate to securities market. The details have to be provided as an attachment.
#3 – Undertaking that the applicant’s current Investment Adviser’s mandate have either been completed or duly terminated and that the entity will continue to be responsible for any liability, which may arise out of the mandates
This can be in a form of a declaration. Again, you have to attach the same.
#4 – Details of Enquiry / Adjudication / Prosecution or any other action initiated or pending against the company with respect to its activities
You have to give details of or any action initiated or pending against you with respect to your activities. This will be in the form of an attachment. If there has been no action, attach a declaration to that effect.
#5 – Details of Applicant Registered with SEBI as any other intermediary
Again, if there are any relevant details, you can attach the same. Else, a declaration that you are not registered as any other intermediary.
#6 – Details of Directors
This is applicable only in case of companies. The companies have to share the details on the company letterhead. For other entities, you have to attach a document that this requirement is not applicable to you.
To be sure that you are doing all that is necessary, it will be ideal to get in touch with SEBI’s regional office (in your region) to know if there are any other formalities to be completed.
That’s it.
Note: Now, if you do not pay renewal fees, the license will expire and you will not be able to carry on the business as an investment adviser. In future, SEBI may ask you to clear the fees payable.
If you have any queries, you can write to me at kruti@cskruti.com