Sebi Comes Out With Modalities, For Investment Adviser Applications

Markets regulator Sebi on Monday issued modalities pertaining to investment adviser applications, asking all the new and existing applicants to approach BSE Administration and Supervision Ltd (BASL) for registration related activities. Sebi, in June 2021, granted recognition to BASL, a wholly-owned subsidiary of BSE to act as an Investment Adviser Administration and Supervisory Body (IAASB) for a period of three years.

As per the provisions of investment advisers rules, the administration and supervision of Investment Advisers (IAs) has been delegated to BASL. In view of this, all the new IA applicants as well as existing IAs have been asked to approach BASL for registration and post registration activities related to Investment Advisers, the Securities and Exchange Board of India (Sebi) said in a statement.

Further, applicants can refer to framework issued by BASL regarding revised process for seeking membership from BASL and registration from Sebi. Under the norms, BASL is required to supervise IAs, including both onsite and offsite, redress grievances of clients and IAs, take administrative action including issuing warnings and referring to Sebi for enforcement action. In addition, it needs to monitor activities of IAs by obtaining periodical reports, submit such reports to Sebi and maintain a database.

(PTI)