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 Call for Inputs: SEBI’s Consultation Paper on Review of Regulatory Framework for Investment Advisers and Research Analysts
Call for Inputs: SEBI’s Consultation Paper on Review of Regulatory Framework for Investment Advisers and Research Analysts

August 21, 2024

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SEBI has released a Consultation Paper on Review of Regulatory Framework for Investment Advisers and Research Analysts for public feedback. Here is a link to the full document.

The stated objective of the proposed regulatory framework is to simplify, ease and reduce the registration requirements and cost of compliance for Investment Advisers (‘IAs’) and Research Analysts (‘RAs’) registered with SEBI. The changes proposed will be brought about via amendments/ clarifications to existing regulations including the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 and (‘IA Regulations’) and Securities and Exchange Board of India (Research Analysts) Regulations, 2014 (‘RA Regulations’).

The proposed framework addresses several key issues, including relaxed eligibility criteria for IAs and RAs, such as minimum qualifications, certifications, and experience. It allows for dual registration as both IA and RA, part-time registration, and relaxations in the designation of a 'principal officer.' It also includes provisions for appointing independent professionals as 'compliance officers' and introduces changes to the regulatory provisions specific to IAs. Additionally, it relaxes corporatisation requirements for individual IAs and clarifies regulatory provisions for RAs, including the identification of persons associated with research services, exemptions for proxy advisers, and eligibility criteria for partnership firms.

The framework also addresses fee structures, client-level segregation of services, guidelines for recommending model portfolios, and the disclosure of terms and conditions to clients, along with KYC requirements and record maintenance. The framework specifically highlights the need for disclosure to clients of use of Artificial Intelligence (‘AI’) tools in IA and RA services. 

In this regard, we request you to send us your comments, inputs and feedback before August 24th, 2024 to tejasvi@nasscom.in and ananya@nasscom.in with a copy to policy@nasscom.in on the proposed framework, particularly highlighting any potential challenges in implementation, opportunities for further improvement, specific concerns related to the IT sector and/ or any other relevant observations. 

 


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16082024_SEBI_Consultation Paper on Review of Regulatory Framework for IA & RA.pdf

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