Investment advisers to need CIBIL score for SEBI approval
15 Oct 2012 1:39 AM GMT
Investment advisers will need to have a good credit report card and satisfactory research capacity to get permission to provide advise to investors in stocks and other capital market segments.
Market regulator SEBI [Securities and Exchange Board of India] recently decided to frame exclusive regulations for Investment advisers, after consulting other regulators like RBI, IRDA and PFRDA, as also the comments received from the public on a concept paper disseminated for this purpose.
After deliberations over the proposed rules at the SEBI board, it was felt that the regulations need to robust enough to safeguard the interest of investors in the capital markets, a senior official said.
Accordingly, a number of changes were suggested by the board to the draft regulations proposed by SEBI, including the requirement of a credit report or score from CIBIL, and details of the research facility to be submitted by the entities seeking to become investment advisers, he added.
While the draft regulations were presented before SEBI board in August, the final regulations would be notified soon after incorporating the proposed changes.
Market regulator SEBI [Securities and Exchange Board of India] recently decided to frame exclusive regulations for Investment advisers, after consulting other regulators like RBI, IRDA and PFRDA, as also the comments received from the public on a concept paper disseminated for this purpose.
After deliberations over the proposed rules at the SEBI board, it was felt that the regulations need to robust enough to safeguard the interest of investors in the capital markets, a senior official said.
Accordingly, a number of changes were suggested by the board to the draft regulations proposed by SEBI, including the requirement of a credit report or score from CIBIL, and details of the research facility to be submitted by the entities seeking to become investment advisers, he added.
While the draft regulations were presented before SEBI board in August, the final regulations would be notified soon after incorporating the proposed changes.
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