Sebi lays rules for investment advisers on client segregation, fees
New Delhi: Markets regulator Securities and Exchange Board of India (Sebi) has come out with detailed guidelines for investment advisers asking them to ensure segregation of advisory and distribution activities at the client level.
Besides, Sebi has fixed a cap on fee that investment advisers (IA) can charge from clients.
It has also put in place a procedural framework pertaining to audit and record-keeping.
Under the rules, an individual investment advisers will apply for registration as non-individual investment adviser on onboarding 150 clients and investment advisers will
have to enter into an investment advisory agreement with its clients.
In a circular on Wednesday, the regulator said investment advisers will have to ensure compliance with
regard to client-level segregation of advisory and distribution activities.