5paisa Capital to Surrender Research Analyst Registration Certificate

5Paisa Capital Limited, a prominent player in the Indian fintech space, has been advised by the Securities and Exchange Board of India (SEBI) to surrender its Research Analyst Registration Certificate. This development comes in the wake of the company's failure to renew its registration within the prescribed timeframe.

Key Details of the Advisory

According to the company's disclosure to the stock exchanges:

SEBI communicated the advisory on October 28, 2025, via email.
The advisory follows earlier correspondence regarding the expiry of the Research Analyst registration and a Show Cause Notice issued under Section 12(3) of the SEBI Act, 1992.
The company is required to submit an online application for surrender through the BSE portal.

Reason for Surrender

The primary reason for this advisory is the company's non-compliance with regulatory requirements. As per Clause 3 of the Second Schedule to the SEBI (Research Analysts) Regulations, 2014:

Research Analysts are required to pay prescribed renewal fees every five years from the date of grant of registration.
This payment should be made within three months before the expiry of the validity period to keep the registration in force.
5paisa Capital failed to remit the renewal fees within the stipulated time, resulting in the expiry of the Certificate of Registration.

Impact on Operations and Financials

Despite the regulatory action, 5paisa Capital has assured stakeholders that this development will not significantly affect its business operations or financial performance. The company stated:

The Research Analyst activity is not a core business segment of the company.
The surrender of the Research Analyst Certificate does not have any material impact on the operations or financials of the company.

Company's Response

5paisa Capital has committed to initiating the process of surrendering the Research Analyst Registration Certificate as advised by SEBI. The company also reaffirmed its commitment to maintaining high standards of corporate governance and ensuring compliance with SEBI Listing Regulations.

As the fintech landscape continues to evolve, it remains to be seen how this regulatory development will influence 5paisa Capital's strategy and market positioning in the long term.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.42%	-0.22%	-9.18%	-16.09%	-39.33%	-2.90%

5Paisa Capital , a leading discount brokerage firm, has reported steady financial results for the second quarter, despite challenging market conditions. The company's customer base has surpassed the 5 million mark, showcasing its growing presence in the Indian financial services sector.

Financial Performance

5paisa Capital's total income for Q2 remained relatively stable at INR 77.30 crores, broadly in line with the previous quarter. However, the company's Profit After Tax (PAT) stood at INR 9.48 crores, down 18% quarter-on-quarter, primarily due to increased marketing investments and higher finance costs linked to Margin Trading Facility (MTF) income growth.

Key Metrics	Q2	QoQ Change
Total Income	INR 77.30 crores	Steady
PAT	INR 9.48 crores	-18%
Customer Base	5 million+	N/A
New Customer Acquisition	95,000+	+20%
Average Daily Turnover	INR 2.60 trillion	+18%
MTF Income	N/A	+22%
Client Funding Book	INR 364.00 crores	+17%
Mutual Fund AUM	INR 1,647.00 crores	+4.7%

Market Dynamics and Company Performance

The quarter was marked by volatile equity markets, with foreign institutional investors (FIIs) recording net outflows exceeding $10 billion, while domestic institutional investors (DIIs) inflows crossed $20 billion. Despite these headwinds, 5paisa Capital managed to:

Increase new customer acquisition by 20% to over 95,000 customers
Reduce customer acquisition costs by 15%
Improve first-year revenue by 25%
Grow average daily turnover by 18% to INR 2.60 trillion
Expand the client funding book by 17% to INR 364.00 crores
Increase Mutual Fund Assets Under Management (AUM) to INR 1,647.00 crores, up 4.7% sequentially

Product and Technology Enhancements

5paisa Capital continues to focus on improving its trading platform and user experience. Key upgrades implemented during the quarter include:

Real-time bank verification for digital onboarding
Dedicated in-app ETF dashboard
Enhanced payment gateways for mutual fund SIP processing
Revamped Margin Trading Facility (MTF) journey
Introduction of the Scalper platform for web trading
Launch of a strategy analyzer on the FNO360 platform
Implementation of semi-standardized validated UPI handles

Management Commentary

Gaurav Seth, MD and CEO of 5paisa Capital, commented on the results, stating, "Despite challenging external backdrop, our focus remains on delivering best-in-class solutions, high-quality customer acquisition, and ensuring a strong lifetime value from each acquired customer."

The company remains committed to continuous innovation, strengthening its product and technology stack while leveraging AI to further enhance customer experience and engagement.

Outlook

While 5paisa Capital has shown resilience in a volatile market environment, the company faces stiff competition in the discount brokerage space. Management has indicated that they are charting their own course for product development and market share growth, with an ambition to become a top player in the industry over the next three to five years.

As the Indian financial markets continue to evolve, 5paisa Capital's focus on technology-driven solutions and customer acquisition strategies will be crucial in determining its future growth trajectory and market position.