The Securities and Exchange Board of India (SEBI) has recently introduced amendments to the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 vide SEBI (Investment Advisers) (Amendment) Regulations, 2024.
The amendments, outlined in the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024, primarily focus on enhancing the regulation and supervision of investment advisers. Key changes include the recognition of bodies or corporate entities for the administration and supervision of investment advisers, as well as clarifications regarding the enrollment of existing and new advisers with recognized entities.
One significant amendment pertains to regulation 6, wherein clause (n) is replaced to address the enrollment of applicants with recognized bodies or corporate entities. The provision ensures that both existing and new investment advisers are enlisted with recognized entities, thereby enhancing oversight and accountability within the industry.
Regulation 14 introduces the concept of recognizing bodies or corporate entities for the administration and supervision of investment advisers. This move aims to streamline regulatory processes and ensure standardized practices across the advisory sector. By specifying the terms and conditions for recognition, SEBI seeks to promote investor protection and market integrity.
Furthermore, the addition of regulation 30A establishes a transitional provision concerning actions taken against individuals in relation to the membership of recognized entities. This provision provides clarity and continuity in regulatory actions, ensuring a seamless transition to the amended framework.
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SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 26th April 2024
SECURITIES AND EXCHANGE BOARD OF INDIA (INVESTMENT ADVISERS) (AMENDMENT) REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/169.─In exercise of the powers conferred by sub-section (1) of section 30 read with clause (b) of sub-section (2) of section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, namely, –
1. These regulations may be called the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024.
2. They shall come into force on the ninetieth day from the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, –
I. in regulation 6, clause (n) shall be replaced with the following clause, namely,–
“(n) Whether the applicant is enlisted with a body or body corporate recognised under regulation 14:
Provided that the existing investment advisers shall be deemed to be enlisted with such a body or body corporate from the date of recognition of such body or body corporate:
Provided further that the applicant whose application is received before the date of recognition of the body or body corporate as provided under regulation 14 and who is granted the certificate after the date of recognition of such body or body corporate shall also be deemed to be enlisted with such a body or body corporate.”
II. Regulation 14 shall be replaced with the following regulation, namely, –
“Recognition of body or body corporate for administration and supervision of investment advisers.
14.(1) The Board may recognize a body or body corporate for the purpose of administration and supervision of investment advisers to such extent and on such terms and conditions as may be specified by the Board.
(2) The Board may specify that no person shall act as an investment adviser unless such a person is enlisted with the recognized body or body corporate and in such an event, the provisions of these regulations and the specified provisions of the bye-laws or articles of such a body or body corporate shall apply to the investment adviser.”
III. After regulation 30, the following regulation shall be inserted, as under:
“Savings
30A. Prior to the commencement of the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024, any action taken or purported to have been taken or any action that may be taken against any person in relation to the membership of the body or body corporate recognised under regulation 14 shall be deemed to have been done or taken or may be taken under the corresponding provisions of these regulations.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./049/2024-25]
Footnotes:
2. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were subsequently amended on, –
