The Securities and Exchange Board of India (SEBI) on October 25, 2024, issued a circular regarding the Annual Compliance Certificate for Client Level Segregation by Non-individual Investment Advisers and the timeline for submission of periodic reports.
As a step towards ease of doing business and in terms of the recommendation of the working group for review of compliance requirements for Investment Advisers and Research Analysts, as in the case of an individual IA, it has been decided to allow a non-individual IA to obtain an annual compliance certificate from any auditor in respect of abovementioned requirement.
In view of the above, the paragraph 1.2 (i) (i) of the Master Circular shall stand modified as under:
“1.2. (i) Client Level Segregation of Advisory and Distribution Activities (i) The IAs shall maintain on record an annual certificate from an auditor confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations. Such annual certificate shall be obtained within 6 months of the end of the financial year and form part of compliance audit, in terms of Regulation 19(3) of the IA Regulations.”
SEBI, vide Circular no. SEBI/HO/MIRSD/MIRSD-PoD-2/P/CIR/2024/38 dated May 7, 2024 and Master Circular dated May 21, 2024, specified periodic reporting format for IAs. As a step towards ease of doing business, it has been decided to grant a period of 30 days to make submission of periodic reports to IAASB.
Accordingly, paragraph 20.6.ii of the Master Circular shall stand revised as under:
“20.6.ii For the subsequent half-yearly periods, IAs shall submit periodic reports within 30 days from the end of the half-yearly period for which details are to be furnished.”
The provisions of this circular shall come into force with immediate effect.
[Circular No. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/14]
