The Securities Exchange Board of India
(“SEBI”) vide notification dated April
26, 2024 has notified Securities and Exchange Board of India
(Investment Advisers) (Amendment) Regulations, 2024
(“Investment Advisers Amendment”), in
exercise of its powers under Section 30(1) read with Section
11(2)(b) of the Securities and Exchange Board of India, 1992 to
amend Securities and Exchange Board of India (Investment Advisers)
Regulations, 2013 (“Investment AdvisersHyderabad Wealth Management
The Investment Advisers Amendment shall come into force on the
19th day from the date of their publication in the Official
SEBI has introduced amendments through the Investment Advisers
Amendment, with a primary aim to bolster the administration and
supervision of investment advisers. Significant amendments entail
the authorization of body or body corporate to oversee and regulate
investment advisers, along with providing clarity on the enrollment
procedures for both existing and prospective investment advisers
under recognized entities.
The key amendments introduced by the Investments Advisers
Amendment are as follows:Jaipur Stock
I. Enlistment of Investment Advisers with the BodySurat Wealth Management
A notable amendment is found in regulation 6 of Investment
Advisers Regulation, where clause (n) has been substituted by the
Investment Advisers Amendment to oversee the enrollment process of
applicants with recognized body or body corporate. This amendment
mandates that both existing and new investment advisers must be
enlisted with recognized body or body corporate, thus fortifying
supervision and accountability in the sector. As per the Investment
Advisers Amendment, applicant must be enlisted with the recognized
body or body corporate for the grant of certificate of registration
by SEBI. Furthermore, it provides that existing investment advisers
will be considered enlisted with the respective body or body
corporate from the date of its recognition. Additionally,
applicants (investment advisers) whose applications were submitted
prior to the recognition date of the body or body corporate, asKanpur Wealth Management
stipulated in regulation 14, and who receive certification
thereafter, will also be regarded as enlisted with such body or
II. Administration and Supervision of Investment
The amended regulation 14 introduces the concept of recognizing
a body or body corporate for the administration and supervision of
investment advisers, aiming to streamline regulatory processes andJaipur Stock
ensure standardized practices across the sector while promoting
investor protection and market integrity. According to the
Investment Advisor Amendment, SEBI may recognize a body or body
corporate for this purpose, subject to such terms and conditions as
may be specified by the SEBI. Additionally, SEBI may stipulate that
individuals cannot function as investment advisers unless enlisted
with the recognized body or body corporate. In such cases, the
provisions of the Investment Advisers Regulations, as amended from
time to time and the specified provisions of the bye-laws or
articles of such a body or body corporate shall apply to the
III. Savings Clause:
The regulation 30A has been inserted to introduce a transitional
provision, which clarifies that any actions taken or to be taken
against any person regarding membership of the body or body
corporate recognized under regulation 14 prior to the commencement
of the Investment Advisers Amendment, shall be deemed to be taken
under the corresponding provisions of the Investment Advisers
Amendment. This provision aims to ensure a seamless transition to
the updated framework.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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