Introduction: In a recent move, the Securities and Exchange Board of India (SEBI) has announced an extension to the deadline for compliance with qualification and experience requirements for investment advisers. This decision comes as a response to representations from various stakeholders and the evolving landscape of the investment advice domain.
Regulation 7 Amendment: Regulation 7 of SEBI (Investment Advisers) Regulations, 2013, was amended in 2020 to outline the qualification and experience requirements for investment advisers. It mandated that individuals and principal officers of non-individual investment advisers, along with those associated with investment advice, must meet the enhanced qualification and experience criteria laid out in regulation 7(1) within three years, i.e., by September 30, 2023.
Extension of Deadline: SEBI, after considering input from stakeholders and recognizing the changing landscape of the investment advisory sector, has extended the timeline for compliance with the enhanced qualification and experience requirements. The deadline, which was initially set for September 30, 2023, has been pushed to September 30, 2025. This extension provides investment advisers with additional time to meet the revised standards.
Notification to BSE Administration & Supervision Limited: The circular also directs BSE Administration & Supervision Limited to disseminate this information to its members and publish it on its website. This ensures that all relevant parties are made aware of the extended deadline.
SEBI’s Regulatory Authority: This circular is issued by SEBI, in line with its regulatory authority under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and regulation 7(1) of SEBI (Investment Advisers) Regulations, 2013. The objective is to safeguard the interests of securities investors and foster the growth and regulation of the securities market.
Access to Circular: The circular is accessible on the SEBI website, categorized under “Legal” in the “Circulars” section and “Info for” in the “Investment Advisers” subsection.
Conclusion: SEBI’s decision to extend the deadline for compliance with enhanced qualification and experience requirements for investment advisers reflects the regulator’s commitment to adapting to industry dynamics while ensuring investor protection and market development. Investment advisers now have until September 30, 2025, to meet the revised standards, providing them with additional time for compliance. This move aims to strike a balance between regulatory requirements and industry realities.
*****
Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/MIRSD-PoD-2/P/CIR/2023/168
Dated: October 10, 2023
To
All Registered Investment Advisers
BSE Administration & Supervision Limited
Madam / Sir,
Subject: Extension in timeline for compliance with qualification and experience requirements under Regulation 7(1) of SEBI (Investment Advisers) Regulations, 2013
1. Regulation 7 of SEBI (Investment Advisers) Regulations, 2013, as amended vide SEBI (Investment Advisers) (Amendment) Regulations, 2020, specifies the qualification and experience requirements for investment advisers and provides that an individual investment adviser or principal officer of a non-individual investment adviser registered under these regulations and persons associated with investment advice shall comply with the enhanced qualification and experience requirements specified in regulation 7(1) within a period of three years, i.e., by September 30, 2023.
2. Based on the representations received from various stakeholders and in view of the emerging landscape of the domain of investment advice, the first proviso to regulation 7(1) of SEBI (Investment Advisers) Regulations, 2013 has been amended with effect from September 30, 2023, vide the SEBI (Investment Advisers) (Amendment) Regulations, 2023 dated October 09, 2023. Accordingly, it is now specified that the timeline to comply with the enhanced qualification and experience requirements under regulation 7(1) is extended to September 30, 2025.
3. BSE Administration & Supervision Limited is directed to bring the provisions of this circular to the notice of its members and also disseminate the same on its website.
4. This circular is issued in exercise of the powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992 read with regulation 7(1) SEBI (Investment Advisers) Regulations, 2013, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
5. This circular is available on the SEBI website atsebi.gov.in under the categories “Legal à Circulars” and “Info for à Investment Advisers”.
Yours faithfully,
Srishti Ambokar
Deputy General Manager
Tel. No. 022-26449354
srishtijc@sebi.gov.in
