personal finance

Investment advisors cannot provide distribution services, says Sebi


MUMBAI: The Securities and Exchange Board of India (Sebi) on Monday said that an individual investment advisor cannot provide distribution services to clients, as the markets regulator segregated advisory and distributing activities.

In a press release, the market regulator said it will introduce an upper limit on the fees charged to clients by investment advisers.

Sebi also said that there will be an enhanced eligibility criteria for registration as an investment advisor, including net worth, qualification and experience requirements.

However, the existing individual investment advisers will be grandfathered from complying with the enhanced qualification and experience norms.

With an aim to facilitate use of latest fintech innovations in capital markets, Sebi on Monday decided to allow live testing of new products, services and business models by market players on select customers, PTI reported.

The regulatory markets also approved provisions for fast-tracking rights issue of units by REITs and InvITs.





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