SEBI has also fixed a cap on fee that investment advisors can charge from clients.
Markets regulator Securities and Exchange Board of India (SEBI) has come out with detailed guidelines for investment advisors asking them to ensure segregation of advisory and distribution activities at the client level.
Besides, SEBI has fixed a cap on fee that investment advisors (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 IA will apply for registration as non-individual investment advisor on onboarding 150 clients and IA will have to enter into an investment advisory agreement with its clients.
In a circular on Wednesday, the regulator said investment advisors will have to ensure compliance with regard to client-level…