The SEBI vide its Circular dtd. 30th September, 2021, has extended the due date of complying with ‘Guidelines for Investment Advisers’ issued vide Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/182 dtd., 23rd September, 2020, which prescribed timeline of 6 months from the end of each F.Y. for Investment Advisers (IA) to conduct annual audit in respect of compliance of SEBI (Investment Advisers) Regulations, 2013 and circulars issued thereunder. Further, a timeline of 1 month from the date of the audit report but not later than 31st October of each year was prescribed for submitting adverse findings of such audit, if any, for the previous F.Y. starting with the F.Y. ending 31st March, 2021.

SEBI Guidelines for Investment Advisers’ - Extension of timelines

The Circular further specified a timeline of 6 months from the end of the F.Y. for the IAs to obtain an annual certificate from an auditor confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations.

After due consideration, for F.Y. ending 31st March, 2021, it has been decided to extend the timeline for compliance with the aforesaid requirements by 3 months.

Accordingly, the extended due dates are as follows:

Particulars Due date Extended due date
Annual Audit 30th September, 2021 31st December, 2021
Submission of adverse findings 31st October, 2021 31st January, 2022
Annual Certificate 30th September, 2021 31st December, 2021

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2021/632

September 30, 2021

All Investment Advisers

Sir / Madam

Subject: ‘Guidelines for Investment Advisers’ – Extension of timelines

1. “Guidelines for Investment Advisers” issued vide Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/182 dtd., 23rd September, 2020 (hereinafter referred as “Circular”) inter alia prescribed timeline of six months from the end of each financial year for Investment Advisers (IA) to conduct annual audit in respect of compliance of SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”) and circulars issued thereunder. Further, a timeline of one month from the date of the audit report but not later than October 31st of each year was prescribed for submitting adverse findings of such audit, if any, for the previous financial year starting with the financial year ending March 31, 2021.

2. The Circular further specified a timeline of 6 months from the end of the financial year for the IAs to obtain an annual certificate from an auditor confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations.

3. SEBI is in receipt of representations from IAs requesting for extension of above mentioned timelines prescribed for annual compliance audit and annual certificate confirming client level segregation due to pandemic.

4. After due consideration, for financial year ending March 31, 2021, it has been decided to extend the timeline for compliance with the aforesaid requirements by three months.

5. Accordingly, the Circular stands partially modified as under:

i. In accordance with clause 2 (vii) of the Circular, for financial year ending March 31, 2021, the IAs shall conduct the annual compliance audit by December 31, 2021 and submit the adverse findings of the audit, if any, by January 31, 2022.

ii. Further, in accordance with clause 2 (i) of the Circular, for financial year ending March 31, 2021, IA shall obtain a certificate from an auditor by December 31, 2021.

6. All other requirements, terms and conditions specified in the Circular shall remain unchanged.

7. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

8. The circular is available on SEBI website at sebi.gov.in under the categories “Legal framework – Circulars” and “Info for – Investment Advisers.”

Yours faithfully,

Manaswini Mahapatra
General Manager
Ph: 022-26449375
Email: [email protected]

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