Amrapali Aadya Trading & Investment’s Registration Cancelled by SEBI for Non-compliance

Moneylife Digital Team 19 August 2025

Investor Interest

Market regulator Securities and Exchange Board of India (SEBI) has cancelled the certificate of registration (CoR) of Amrapali Aadya Trading and Investment Pvt Ltd as a portfolio manager. The decision comes after repeated non-compliance with regulatory requirements and SEBI’s conclusion that the portfolio manager no longer meets the ‘fit and proper person’ criteria under its regulations.

The order, issued by SEBI’s whole-time member (WTM) Ananth Narayan G, says, “Amrapali Aadya Trading and Investment admitted failing to submit compliance reports, citing no clients and a wish to surrender registration. However, due to repeated violations and past enforcement orders, SEBI held that permitting an exit without consequences would undermine its regulatory framework, making the company’s non-compliance too serious to ignore.”

SEBI’s Portfolio Managers Regulations 2020, together with the master circular for portfolio managers dated 20 March 2023, mandates that all registered portfolio managers submit annual compliance reports, net worth confirmations, corporate governance reports and performance audit reports within specified timelines.

Despite advisories and reminders, Amrapali Aadya Trading & Investment failed to file these mandatory submissions for the FY21-22 and FY22-23. The company argued that the lapses were due to the closure of its office, the imprisonment of its managing director (MD) and the absence of clients. It further claimed that reports such as performance audits were meaningless in such circumstances.

SEBI, however, clarified that there are no exceptions to these obligations. Even portfolio managers without clients must submit net worth certificates and NIL compliance reports. Such filings are considered essential for monitoring capital adequacy, corporate governance and transparency.

The regulator also highlighted that this was not the first instance of violations by the company. In August 2021, SEBI issued an order under Section 11B restraining the company from accessing the securities market for five years.

In April 2022, SEBI passed an adjudication order imposing monetary penalties on the firm. Later, in November 2022, an enquiry order was issued for similar lapses.

Although the adjudication order has been challenged before the securities appellate tribunal (SAT), the 11B and enquiry orders remain unchallenged. Recovery proceedings for unpaid penalties are also pending against the company.

In its final findings, SEBI noted that serious breaches such as misuse of client assets and falsification of records raise fundamental questions about the integrity of the firm. The restrictions already imposed under the 2021 order themselves amount to a disqualification under the 'fit and proper person' criteria set out in Schedule II of the Intermediaries Regulations.

Accordingly, SEBI concluded that Amrapali Aadya Trading and Investment fails to satisfy the registration requirements under Regulations 7(2)(j) and 8 of the PMS Regulations. With this conclusion, SEBI cancelled the company’s portfolio manager licence.

You can also read:

Misuse of Clients' Funds: SEBI Slaps Rs29 Crore Fine on Amrapali Aadya Trading, Aadya Commodities, 7 Others

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