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SEBI has allowed RIAs to showcase their performance. However, such a report has to come from a performance validation agency.
According to SEBI guidelines, investment advisers can now make claims on returns or performance. However, risk and return metrics have to be verified by credit rating agencies recognised by SEBI.
SEBI said that the investment advisers are required to make such claims in the format specified by the regulator.
The regulator has specified that this regulation will also be applicable to research analysts, algo providers empanelled with a recognized stock exchange and intermediaries permitted by SEBI to provide the services of investment advisers, research analysts and algorithmic trading.
