SEBI makes registration mandatory for investment advisers
22 Jan 2013
The Securities and Exchange Board of India (SEBI) has made it mandatory for investment advisers to get registered with it before offering advice on an investment product. An adviser should also be professionally qualified to offer such advice, SEBI said
The new guidelines for advisers, which will come into effect from 10 February, require advisers get SEBI certification within six months of the rules coming into force.
The certification, which will be valid for five years, has to be renewed three months prior to expiry.
The regulations seek to ensure that investors do not suffer due to advisers' links with issuers of financial products.
SEBI has already barred investment advisers from accepting commission from anyone other than the client. They cannot charge commission on companies whose products they sell.
They should not "enter into transactions on their own account that are contrary to the advice given to clients within 15 days of giving the advice."
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