SEBI (Investment Advisers) (Amendment) Regulations, 2025

The Securities and Exchange Board of India (SEBI) has published the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2025. This amendment, effective upon its publication in the Official Gazette, modifies the existing 2013 regulations for investment advisers. Specifically, it changes Regulation 8, which deals with the deposits that investment advisers are required to maintain. The previous sub-regulation (2) has been replaced, stating that the deposit must now be held in a form or manner specified by SEBI. Furthermore, a new sub-regulation (3) has been added, which mandates that the deposit must be marked with a lien in favor of a SEBI-recognized body responsible for the administration and supervision of investment advisers. This deposit can be used to pay for any dues that an investment adviser fails to settle, particularly those arising from online dispute resolution or other specified mechanisms. The change aims to regulate the use and accessibility of these deposits, ensuring they are available to cover specific liabilities.

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION 

Mumbai, the 4th August, 2025

SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) (AMENDMENT)
REGULATIONS, 2025

F. No. SEBI/LAD-NRO/GN/2025/253.—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, 2025.

2. They shall come into force on 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 8,

i) sub-regulation (2) shall be substituted with the following, namely, –

“(2) The deposit shall be maintained in such a form or manner as may be specified by the Board.”

ii) after sub-regulation (2), the following new sub-regulation shall be inserted, namely, –

“(3) Such deposit shall be marked as lien in favour of a body or body corporate recognised by the Board for the purpose of administration and supervision of investment advisers in accordance with regulation 14 of these regulations:

Provided that the deposit shall be available for utilization in case the investment adviser fails to pay the dues emanating out of arbitration and conciliation proceedings, if any, under the Online Dispute Resolution Mechanism or such other mechanism as may be specified by the Board.”

BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./268/2025-26]

Footnotes:

1. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were published in the Gazette of India on January 21, 2013 vide No. SEBI/LAD-NRO/GN/2012-13/31/1778.

2. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were subsequently amended on, –

a. 23^rdMay, 2014 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/03/1089;

b. 8^thDecember, 2016 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide No. SEBI/LAD-NRO/GN/2016-17/023;

c. 17^thApril, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10;

d. 3^rdJuly, 2020 by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/22;

e. 11^thJanuary, 2021 by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/04;

f. 16^thMarch, 2021 by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/11;

g. 3^rdAugust, 2021 by the Securities and Exchange Board of India (Investment Advisers) (Third Amendment) Regulations, 2021 vide No SEBI/LAD-NRO/GN/2021/34;

h. 3^rdAugust, 2021 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30;

i. 17^thJanuary, 2023 by the Securities and Exchange Board of India (Change in Control in Intermediaries) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/115;

j. 07^thFebruary, 2023 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/121;

k. 3^rdJuly, 2023 by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD–NRO/GN/2023/137;

l. 17^thAugust, 2023 by the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/146;

m. 9^thOctober, 2023 by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/154;

n. 26^thApril, 2024 by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/169;

o. 16^thDecember, 2024 by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/219.