SEBI proposes easier rules for investment advisors, research analysts
SEBI, India's market regulator, just dropped a bunch of proposals aimed at making things simpler for Investment Advisers (IAs) and Research Analysts (RAs).
The focus? Less paperwork and smoother processes—all while keeping investors protected.
These ideas are up for public feedback.
Changes in advisory fees
If these changes go through, IAs and RAs could privately share their certified past performance with clients (as long as they add disclaimers).
Advisers might also charge up to 2.5% annually for giving second opinions on assets sold by others—but only if clients agree each year after seeing all the costs.
This aims to provide more choice and clearer info.
Other proposed changes
SEBI also wants to give bigger advisers three months to switch their business structure if they cross certain size limits—no more instant corporatization stress.
Plus, more people can qualify as advisers now: grads from recognized colleges, CFA Charterholders, or those with select NISM certifications are in.
And good news—proof of address and net worth paperwork could get a lot simpler too.