5Paisa Capital Limited, a prominent financial services company, is facing regulatory scrutiny as it received a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI) on September 10, 2025. The notice pertains to the potential cancellation of the company's Research Analyst certificate of registration, raising concerns about its compliance with regulatory requirements.

Regulatory Non-Compliance

The SCN was issued under Section 12(3) of the SEBI Act, 1992, in conjunction with Regulation 30A of the SEBI (Intermediaries) Regulations, 2018. The primary issue revolves around 5paisa Capital's failure to pay the prescribed renewal fees for its Research Analyst registration within the stipulated timeframe.

According to SEBI regulations, specifically Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014, research analysts are required to pay prescribed fees every five years to maintain their registration. These fees must be paid within three months before the expiry of the current registration period.

Expiration of Registration

The company's certificate of registration as a Research Analyst has already expired due to the non-payment of these fees. This lapse has led SEBI to question whether 5paisa Capital continues to satisfy the conditions of registration as stipulated under Regulation 13(i) read with Clause 3 of the Second Schedule of SEBI (Research Analyst) Regulations, 2014.

Company's Response

In response to this development, 5paisa Capital has stated that it will promptly respond to the show cause notice. The company has also committed to informing the stock exchanges of any material developments regarding this matter.

Gourav Munjal, Whole Time Director & CFO of 5paisa Capital Limited, signed the disclosure, emphasizing the company's commitment to adhering to the highest standards of corporate governance.

Financial Impact

While the exact financial implications of this regulatory action remain uncertain, 5paisa Capital has acknowledged that the impact cannot be quantified at this time. The ultimate financial consequences will depend on the outcome of the proceedings following the company's response to the SCN.

Market Implications

This development could have significant implications for 5paisa Capital's operations, particularly in its capacity as a research analyst. The potential cancellation of its Research Analyst registration could affect the company's ability to provide certain services to its clients and may impact its market position in the financial services sector.

As the situation unfolds, investors and market watchers will be keenly observing how 5paisa Capital addresses these regulatory concerns and what steps it takes to rectify its compliance issues with SEBI.

5paisa Capital Limited will continue to make disclosures in compliance with the SEBI Listing Regulations as further developments occur in this matter.

5Paisa Capital Limited, a leading fintech company, has announced its unaudited financial results for the first quarter of the fiscal year 2021, ending June 30, 2020. The company's Board of Directors approved the standalone and consolidated financial statements during a meeting held on July 13, 2020.

Financial Results Approval

The board meeting, which commenced at 12:00 PM and concluded at 3:55 PM, saw the approval of the company's quarterly financial performance. These results have undergone a limited review by the statutory auditors, ensuring compliance with regulatory standards.

Rights Issue Proceeds Utilization

In a significant development, 5Paisa Capital reported that the proceeds from its rights issue, which was raised during the Financial Year 2019-20, have been fully utilized as of the quarter ended June 30, 2020. This complete utilization of funds demonstrates the company's efficient capital allocation and execution of its growth strategies.

Transparency and Disclosure

Adhering to the principles of corporate governance and transparency, 5Paisa Capital has made the financial results available to stakeholders. The company has uploaded the detailed financial statements on the websites of the stock exchanges where it is listed, as well as on its official website. This move allows investors and analysts to access and review the company's performance comprehensively.

Conclusion

While specific financial figures for the quarter ended June 30, 2020, were not provided in the announcement, 5Paisa Capital's proactive approach in utilizing its rights issue proceeds and promptly reporting its results indicates a focus on growth and shareholder communication. As the fintech sector continues to evolve rapidly, 5Paisa Capital's financial results and strategic initiatives will be closely watched by industry participants and stakeholders alike.