SEBI, as the market regulator, has made it easier for existing registered investment advisors and research analysts to be officially recognized. This means they won’t need to undergo a long approval process. SEBI updated its rules for investment advisors and research analysts to achieve this.
SEBI is constantly working to streamline the process and make it easier for investment advisors and research analysts to do their jobs while ensuring proper oversight.
SEBI has made it cheaper for research analysts to apply and stay registered with them. They’ve reduced both the application and registration fees. This means research analysts don’t have to pay as much to SEBI to keep their Certificate of registration valid. It’s a move to make things more affordable and accessible for these professionals.
Application fee
The application fee for individuals and partnership firms who are research analysts is now ₹2,000. Proxy firms also have to pay ₹2,000, while larger companies, including limited liability partnerships, pay ₹20,000.
Registration fees
When it comes to the registration fee, individuals and partnership firms will now pay ₹3,000. Proxy advisory firms have the same fee, and larger companies will pay ₹30,000.
Validity of Registration
Every five years, when the registration needs to be renewed, individuals and partnership firms pay ₹1,000, while proxy advisory firms pay the same, and larger companies pay ₹5,000. These fees apply to keep their registration valid with SEBI.
Date of change
SEBI mentioned that these rule changes, including the new fee system for research analysts, will start being enforced 90 days after April 26th. SEBI oversees the registration process for both investment advisors and research analysts in India.
Effect on competition
The financial advice market here is really competitive. Registered investment advisors have to compete with traditional banks and brokerage firms that offer similar services. Many investors also prefer managing their investments themselves, leading to a growing demand for online investment platforms, robo advisors, and discount brokers.
Conclusion: SEBI’s initiative to simplify the registration process for investment advisors and research analysts is a commendable step towards fostering a conducive environment for professionals in the financial advisory sector. By reducing bureaucratic barriers and enhancing affordability, SEBI aims to promote innovation, competition, and consumer welfare in India’s financial markets. These regulatory changes are expected to have a positive impact on the competitiveness and accessibility of financial advisory services, ultimately benefiting both professionals and investors alike.
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