Regulatory Alerts2025-02-17
Most Important Terms and Conditions (MITC) for Investment Advisers
The Securities and Exchange Board of India (SEBI) has mandated that all Investment Advisers incorporate standardized Most Important Terms and Conditions (MITC) into their advisory agreements to protect investor interests. The circular requires advisers to inform existing clients of these terms by June 30, 2025, while new agreements must include the MITC and obtain client consent immediately. The standardized terms prohibit guaranteed returns, restrict fee structures for individual clients, mandate risk profiling, and establish a clear grievance redressal mechanism.
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