Either sell or advise, Sebi says investment advisors can't do both

Investment advisers can either distribute financial products or advise on them to investors, but cannot do both, as per Markets regulator SEBI.

The move will be applicable from October 1. The Securities and Exchange Board of India has amended the Investment Advisers Regulations and covers any person who advises clients on purchase, sale, investment or portfolio management in securities for these entities who is called an investment adviser.

SEBI has stipulated segregation of services. At present, advisers carry out both advisory and distribution services and there is no segregation.

Individual investment advisers can no longer advise and distribute investment products