Tag Archives: investment advisors

investment advisors

SEBI mandate to the registered investment advisors that they should not deal in unregulated products including digital gold.

It is surprising that SEBI has not mentioned crypto currencies like bitcoins because i see advertisements being openly showed on the OTT platform for trading in bitcoins even though there is no regulation currently in place for bitcoins. So if the bitcoins are not officially allowed and it is not a legal tender or a security or a negotiable instrument or currency, then how come advertisements are allowed. There is one advertisement which asks people to deposit as low as Rs.100 in bitcoins and to do SIP in bitcoins. Frankly how many people know the real meaning of bitcoins. Its a dangerous territory and sooner that regulators wake up the better.

Copy of SEBI press release regarding digital gold given below.

https://www.sebi.gov.in/media/press-releases/oct-2021/dealing-in-unregulated-products-by-sebi-registered-investment-advisers_53370.html

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investment advisors

SEBI has brought in a concept of an Investment Advisor Administration and Supervisory Body which will regulate the registered investment advisors in the country under the SEBI (Investment Advisors) Regulations. For that purpose they have granted recognition to BSE Administration & Supervision Limited as an Investment Advisor Supervisory Body. This body i.e. BASL, shall have the following responsibilities, viz.

i. Supervision of IAs including both on-site and offsite
ii. Grievance redressal of clients and IAs
iii. Administrative action including issuing warning and referring to SEBI for enforcement action
iv. Monitoring activities of IAs by obtaining periodical reports
v. Submission of periodical reports to SEBI
vi. Maintenance of database of IAs

SEBI shall also concurrently administer and supervise the RIAs (registered investment advisors) and shall be subject to periodic inspection by SEBI. So there will be a dual supervisor body for RIAs going forward.

Pursuant to this grant of recognition to BASL, all RIAs are required to ensure compliance with the following:
i. Membership of IAASB – they have to take membership of BASL within 3 months of the recognition of BASL, which has been recognized from 1st June, 2021. So all RIAs have to perforce take membership of BASL by end August, 2021
ii. Payment of fees: All RIAs have to pay the membership fees to BASL. The fee structure is given below:

SEBI has also modified its fee structure w.e.f. 1st April, 2021 vide its amendment notification dated 11th January, 2021. It appears that fees to SEBI has been discontinued, instead the fees have to be paid to BASL.

Detailed SOPs and FAQs have been issued by BASL with respect to the membership of BASL and other incidental matters. That can be found here.

https://www.sebi.gov.in/media/press-releases/jun-2021/bse-administration-and-supervision-limited-granted-recognition-for-administration-and-supervision-of-investment-advisers_50540.html

Get ready for increased supervision and more compliances – RIAs


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supervision of RIAs

There was a news which came in Times of India that BSE has set up a supervisory body to regulate the Registered Investment Advisors in the country. Registered Investment Advisors are a breed of professionals who advises individuals on investments and manages their portfolios. They are registered and regulated by SEBI under the SEBI (Investment Advisors) Regulations, 2013. They are known as capital market intermediaries.

Apparently SEBI thought it fit to divest the supervisory role to another entity for which BSE has set up a wholly owned subsidiary BSE Administration & Supervision Ltd. (BASL) to perform that role. Now all existing investment advisors will have to register with this new entity BASL as a member.

Another level of compliances goes up for the investment advisors in the country, sigh!!

The link to the newspaper article is below:

https://m-timesofindia-com.cdn.ampproject.org/c/s/m.timesofindia.com/business/india-business/bse-sets-up-entity-to-administer-supervise-activities-of-registered-investment-advisors/amp_articleshow/83436058.cms

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