Sebi to monitor unregistered portfolio advisors
Mumbai: Sebi has released a concept paper on issues involved in regulation of investment advisors, inviting comments from the public.

Currently large number of entities, not registered with Sebi, are rendering investment advice to specific clients, without any formal contract, says the concept note.

In the concept paper Sebi said that regulation of all non-registered entities rendering investment advice to specific clients mentioned above will require enormous resources and reach. There are likely to be lakh of advisors and distributors in India and it would not be feasible for Sebi to regulate such a large number directly as a frontline regulator within its current resources or even with resources likely to be available to it in foreseeable future even after taking into account its expansion plans.

According to the concept note a view is emerging as to the creation of a private sector self-financing Regulatory Organisation (RO) to be the first-level regulator for investment advisors. The RO should develop principle-based regulations with risk-based examinations and implement regulation of discrete market segments in phases. The organisation should publish regulations defining the process for regulation and registration, entry and exit, reporting and market conduct. These should include regulations on advertising, performance reporting and presentation, disclosure of conduct, experience and conflicts, disclosure of services and fees, prices and commissions and fair dealing.

The regulator has also expressed concerns over entities (including journalists) not registered with Sebi rendering investment advice on media. Sebi had recently banned stock advisor Anirudh Sethi from acting as an "unregistered portfolio manager" or recommending stocks to clients.
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Mumbai University plans IPO
Mumbai: Mumbai University has initiated the idea of going public to raise money to improve its infrastructure and offer scholarships. The university has set aside Rs 2 lakh from its budget to check the possibility for a State-funded university to list itself and the effect of such a step said Dr Vijay Khole, vice-chancellor, Mumbai University.

It is felt that a listing on the Bombay Stock Exchange will lend more credibility to the university and raise the aspirations of the students and their parents.

The university budget committee has passed a Rs 2-lakh provision to prepare a feasibility report to work out if it will be possible for a subsidised State-run university to go public and if the is found to be plausible, the matter will be taken up with the Government and permission will be sought from the ministries involved university officials said.

The 150-year-old University, governed by the Maharashtra Universities Act, 1994, has received around Rs 250 crore from the Centre and State for various projects.
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