Regulatory Alerts2025-04-02
Relaxation of Advance Fee Restrictions for Investment Advisers and Research Analysts
The Securities and Exchange Board of India (SEBI) has issued a circular relaxing advance fee restrictions for Registered Investment Advisers and Research Analysts to encourage long-term recommendations. Under the new provisions, these entities may charge advance fees for up to one year if agreed upon by the client, replacing previous limits of three months or two quarters. These fee regulations apply exclusively to individual and Hindu Undivided Family clients who are not accredited investors, while institutional and accredited clients remain governed by bilaterally negotiated contractual terms.
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