Sebi extends deadline for comments on investment advisor norms

Sebi has decided to widen the public consultation on proposed norms to regulate trading tips, including through social media platforms, by extending the deadline for comments till November 30.
Some of the proposed measures to keep a tab on unregulated investment advisors have come in for criticism from mutual fund distributors and independent financial advisors as also from people and entities pedalling investment tips through social media.
The last date has been extended after taking into consideration representations from various quarters as the initial deadline ended on November 4.
On October 7, the Securities and Exchange Board of India (Sebi) issued the consultation paper proposing a slew of curbs on unsolicited investment advice and promotion of investment products through electronic and broadcasting media platforms.

"Based on the representations received from various bodies and associations seeking extension of the timeline to furnish the comments/suggestions, it has been decided to grant the time till November 30, 2016, for submitting the comments on the aforesaid consultation paper," Sebi said in a notice.
The proposals are to amend Sebi (Investment Advisers) Regulations, 2013.

Among others, a group of mutual fund distributors and independent financial advisors has opposed proposed registration norms for distributors giving incidental investment advice, citing that such a move would adversely impact the sector.
After its board meeting in September, Sebi proposed to ban unauthorised trading tips through SMSes, WhatsApp, Twitter, Facebook and other social media platforms, as also games, competitions and leagues relating to securities market.

In a detailed consultation paper, Sebi has proposed to ban 'free trial' offers by investment advisors for their prospective clients and sought to make it mandatory for even registered research analysts to provide their research reports for all class of investors at the same time.
The watchdog also sought a re-look on the exemption from registration as an investment advisor, provided to mutual fund distributors and other registered market intermediaries.