Sebi notifies new regulations for registered investment advisers

The new norms would require mandatory segregation of advisory and distribution activities at client-level to avoid conflict of interest.

The Securities and Exchange Board of India (Sebi) has notified changes to the regulatory framework for registered investment advisors (RIAs), which will come into effect following inclusion in the official gazette.

The new norms require mandatory segregation of advisory and distribution activities at the client level, to avoid conflicts of interest.

For non-individual advisors (a corporate or an organisation), the client-level segregation needs to be adhered to at the group level.

Through an arm’s length relationship between its activities, the corporate entity may provide advisory services from a separately identifiable department.