The Securities and Exchange Board of India (SEBI) on December 16, 2024, issued the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.
The following amendments have been stated:
• In regulation 2, in sub-regulation (1), in clause (ac), the words “and investment products” shall be omitted.
• In regulation 6, in clause (e), the word “networth” shall be substituted with the word “deposit”.
• In regulation 7, sub-regulation (2) shall be substituted with the following, namely: -
“(2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations, persons associated with investment advice, and in case of investment adviser being a partnership firm, the partners thereof who are engaged in providing investment advice, shall have at all times relevant NISM certification as specified by the Board from time to time:
Provided that a fresh relevant NISM certification as specified by the Board from time to time shall be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements.”
• Regulation 8 shall be substituted with the following, namely: -
“Deposit. 8. (1) An investment adviser shall maintain a deposit of such sum, as specified by the Board from time to time.
(2) The deposit shall be maintained with a scheduled bank marked as lien in favor of a body or body corporate recognized by the Board for the purpose of administration and supervision of investment advisers in accordance with regulation 14 of these regulations:
Provided that such deposit shall be available for utilization in case the investment adviser fails to pay dues emanating out of arbitration and conciliation proceedings, if any, under the Online Dispute Resolution Mechanism or such other mechanism as may be specified by the Board.”
• In regulation 9, after the words “Form B” and before the words “under First Schedule”, the words and symbols “to an investment adviser or in Form C to a part-time investment adviser, as the case may be,” shall be inserted.
They shall come into force on December 16, 2024.
[Notification No. SEBI/LAD-NRO/GN/2024/219]
