RIAs will now have to become member of the BSE Administration and Supervision (BASL), said SEBI.
The market regulator has appointed BASL to oversee activities of RIAs and check if they comply with the regulatory norms.
While new RIAs will have to pay fee membership fee to BASL to become members, the registration fee for existing RIAs may be waived off based on SEBI’s feedback, said BASL. However, existing RIAs will have to pay renewal fees.
The annual registration fee for individuals and partnership firms is Rs.2000 while such a fee for corporates and LLP is Rs.1 lakh. BASL has kept renewal fees at Rs.1800 for individuals/partnership firms and Rs.99000 for corporates and LLP. RIAs can also take three-year membership.
Please note that the fee is over and above SEBI registration and renewal fees to obtain RIA license.
BASL has released a detailed guideline for membership application. Click here to read the document.
In a press release, BSE said, "Investment advisory has become a key segment for capital market investors. Advisory services have also evolved from personalised services to sophisticated robo advisory with the use of technology. The long experience of BSE for over 146 years as a frontline regulator will help in ensuring that BASL will maintain highest standards of governance and practices. This is an important step by SEBI to enhance the investor faith in the capital markets," said Ashishkumar Chauhan, MD & CEO of BSE.
The BASL has got approval for three years, starting June 1, 2021. SEBI said the renewal will be subject to satisfactory performance by BASL.
