SEBI Issues FAQs On Registered Investment Advisers

SEBI FAQ

SEBI Issues FAQs on Investment Advisers Regulations

The Securities and Exchange Board of India (SEBI) has released a set of Frequently Asked Questions (FAQs) to provide clarity on the SEBI (Investment Advisers) Regulations, 2013 (IA Regulations). The FAQs are intended to guide market participants, particularly investment advisers (IAs), in understanding their regulatory obligations and ensuring compliance with SEBI’s framework.

Guidance on Registration and Compliance

The FAQs address key issues relating to the process of registration as a SEBI-registered Investment Adviser. They also clarify compliance requirements, including eligibility criteria, documentation, and ongoing obligations that advisers must meet to continue operating within the regulatory ambit.

Trading Calls and Public Appearances

SEBI has also provided specific guidance on matters relating to trading calls and public appearances made by Investment Advisers. The FAQs highlight the responsibilities of IAs in ensuring that their communication, whether in the media or otherwise, is consistent with regulatory standards and does not mislead investors.

Advisory to Clients Outside India and KYC Norms

Another important aspect clarified in the FAQs relates to advisory services provided to clients based outside India. The document explains the applicability of IA Regulations in such cases, while also reiterating the importance of adherence to Know Your Client (KYC) norms. This ensures that investor protection standards are maintained irrespective of client location.

Advertisement, Branding, and Disclosure Requirements

The FAQs further elaborate on rules regarding advertisement, usage of brand names, and mandatory website disclosures by Investment Advisers. These measures are aimed at promoting transparency, standardizing industry practices, and curbing any potential misrepresentation to investors. By doing so, SEBI seeks to enhance investor confidence and strengthen the credibility of the advisory ecosystem.

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