SEBI mandates lien on IA and RA capital deposits for dispute settlement

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  • Last Updated on 8 August, 2025

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SEBI Investment Advisers Research Analysts capital adequacy lien dispute settlement arbitration conciliation Regulation 8 amendment

Notification F. No. SEBI/LAD-NRO/GN/2025/253, Dated: 04.08.2025

Amendment to Regulation 8
SEBI has introduced amendments to Regulation 8 of both the Investment Advisers (IA) Regulations and the Research Analyst (RA) Regulations. These amendments specifically address the requirements related to capital adequacy for investment advisers and research analysts registered with SEBI.

Lien on Capital Adequacy Deposits
Under the revised framework, capital adequacy-related deposits maintained by IAs and RAs must now be marked as a lien in favour of a SEBI-recognised supervisory body. This body will be responsible for overseeing the activities of investment advisers and research analysts, ensuring compliance with regulatory norms.

Purpose of the Lien
The lien on these deposits serves as a safeguard for investor protection. In cases where an adviser or analyst fails to meet their obligations arising from arbitration, conciliation, or any other SEBI-specified dispute resolution process, the funds under lien may be utilised to clear such dues.

Enhanced Supervision and Accountability
This amendment strengthens the supervisory framework for IAs and RAs, ensuring that there are readily available funds to settle disputes. It also promotes accountability and reinforces investor trust in the advisory and research ecosystem by ensuring that regulatory and dispute-related obligations are met promptly.

Click Here To Read The Full Notification 

 

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied