Business Standard

Confusing Sebi rules

Any buy/sell advice, including a model portfolio, should be the domain of research analysts while holistic financial planning and asset allocation should be that of investment advisors


Debashis Basu
Over the years the Securities and Exchange Board of India (Sebi) has issued dozens of circulars and guidelines to regulate market intermediaries who deal with retail investors such as stockbrokers, portfolio managers, investment advisors (IAs), and research analysts (RAs). However, if the sole focus is on compliance, disclosure, and reporting, regulations stop serving the real interest of customers. Let me concentrate on just one issue: Who can offer buy/sell advice to investors?

Sebi’s regulatory architecture has correctly tried to create distinct classes of regulated entities defined by the type of activity. For example, only mutual funds and portfolio management services (PMS)
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: May 22 2022 | 11:28 PM IST

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