If you are confused whether your distributor is an adviser or not, you are not alone. Apart from 512 registered advisers, all the others giving ‘advice’ are not qualified to do so. There are indications that the Securities and Exchange Board of India (Sebi) will widen the reach of Sebi Investment Adviser Regulations, 2013 and bring more individuals and firms, who advise investors, under the regulatory ambit. Two Sebi insiders said that this is likely to happen in the board meeting to be held on 23 September.
This move was triggered by the loose use of the words like ‘adviser’ and ‘wealth manager’. Sebi has especially taken cognizance of unregistered investment advisers such as Aceinvestortrader. “Sebi has observed certain unregistered entities offering investment advice. To stem such occurrences, Sebi will amend the investment adviser regulations. After the amendment, any entity providing investment advice would be brought under the ambit of investment adviser regulations,” said the first person directly familiar with the developments. In simpler words, if the amendment takes place, all entities providing investment advice would be brought under Sebi’s jurisdiction. There would be no need to register as an investment adviser. And in case of violations or complaints, Sebi would start the proceedings straightaway .
