Regulatory Alerts2025-08-12
Use of Liquid and Overnight Mutual Funds for Deposit Compliance by Investment Advisers and Research Analysts
The Securities and Exchange Board of India (SEBI) has amended the Investment Advisers and Research Analysts Regulations to permit these entities to maintain their mandatory security deposits in liquid or overnight mutual funds as an alternative to traditional bank deposits. This regulatory change, effective from August 12, 2025, allows the deposits to be marked as a lien in favor of the respective supervisory bodies, IAASB or RAASB, to ensure investor protection. All registered Investment Advisers and Research Analysts are required to comply with these updated deposit requirements no later than September 30, 2025.
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