Framework for Investment Advisers under SEBI (Investment Advisers) Regulations, 2013

The Securities and Exchange Board of India prescribes the framework for administration and supervision of Investment Advisers under the SEBI (Investment Advisers) Regulations, 2013 vide circular dated 18 June, 2021. The regulations specify the roles of Investment Adviser Administration and Supervisory Bodies like BASL and the compliance framework for Investment Advisors relating to membership fees and reporting requirements.

 

Key features of the framework notified by SEBI are:

  • SEBI may recognise any body or body corporate for the purpose of regulating investment advisers and delegate administration and supervision of the IAs on terms and conditions specified by it, under the Investment Adviser Rules.
  • SEBI has granted recognition to BSE Administration and Supervision Limited (BASL), a wholly owned subsidiary of BSE Limited for a period of three years from June 1, 2021 for administration and supervision of investment advisers.
  • An entity granted recognition under SEBI (Investment Advisers) Regulations, 2013 shall be designated as “Investment Adviser Administration and Supervisory Body” (“IAASB”) and shall have the following responsibility:
  1. Supervision of Investment Advisers including both on-site and offsite
  2. Grievance redressal of clients and IAs
  3. Administrative action   including   issuing a warning   and   referring   to   SEBI   for enforcement action
  4. Monitoring activities of IAs by obtaining periodical reports.
  • All SEBI registered IAs shall submit periodic reports to IAASB in such manner as may be specified by IAASB.

 


*Tanvi Singh, Editorial Assistant has put this story together.

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