Regulatory Alerts2023-06-15
Master Circular for Investment Advisers
The Securities and Exchange Board of India issued this Master Circular to consolidate all existing regulatory directions for Investment Advisers into a single document, rescinding previous circulars while preserving past legal actions. The document mandates strict client-level segregation of advisory and distribution activities, caps advisory fees at 2.5% of Assets under Advice or INR 125,000 annually, and prohibits free trials and cash fee payments. It further requires Investment Advisers to maintain detailed interaction records for five years, display complaint data on their websites, and adhere to supervision frameworks delegated to recognized bodies like the BSE Administration & Supervision Limited.
Share