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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Guidelines for Investment Advisers

08-Jan-2025 | SEBI/HO/MIRSD/ MIRSD-PoD-1/P/CIR/2025/003

SEBI has issued guidelines for Investment Advisers, effective from 8th January 2025.

Key highlights-
1. Guidelines related to the maintenance of deposits in terms of Regulation 8 of IA regulations are specified. The IAs are required to maintain deposits based on the maximum number of clients of IA on any day of the previous financial year in the manner specified in Para 2(i) of the Circular.
2. Terms and conditions subject to which an individual or partnership firm registered as a research analyst may be granted a certificate of registration as an investment adviser are specified.
3. Part-time IA is required to provide an undertaking stating that it shall maintain an arms-length relationship between its activity as IA and other activities and shall ensure that its investment advisory services are clearly segregated from all its other activities at all stages of client engagement.
4. Certification requirements of independent professionals to be appointed as Compliance Officer are specified.

Kindly refer to the attached guidelines for more information.

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