Sebi Eases Regulations for Investment Advisors and Analysts

Sebi has updated regulations for investment advisers and research analysts to simplify operations. Changes include lowered qualification criteria, replaced net-worth with deposit requirement, and introduced part-time roles. Additionally, mandatory NISM certifications and client data protection responsibilities were emphasized, alongside new registration and compliance procedures.

Securities and Exchange Board of India (Sebi) has amended its regulations affecting investment advisers (IAs) and research analysts (RAs) to ease business operations. These changes lower the qualification requirements and replace net-worth criteria with deposit obligations.

The regulatory body now permits part-time investment advisory services and excludes trading calls from the definition of investment advice or research service. A graduate degree in any field is now sufficient for certification, but NISM certifications remain mandatory for certain roles.

Sebi also introduced a deposit requirement with a lien for dispute resolution and imposed compliance norms on the use of Artificial Intelligence tools by advisers and analysts. Advisers serving over 300 clients or earning more than Rs 3 crore annually must transition to non-individual registration.

(With inputs from agencies.)