February 24, 2020

New SEBI norms bar investment advisors from distributing products to the same client

[ by Kavita Krishnan ]


The Securities and Exchange Board of India (SEBI) has introduced new norms by which distributors of financial products will no longer be able to act as investment advisors to the same clients.

Firms that advise clients on buying, selling stocks or mutual funds will need to segregate their services from distribution of those products following changes to the law. SEBI has also introduced enhanced eligibility criteria for registration as an investment advisor, including for net-worth qualification and experience.

Moreover, distributors such as bank relationship managers will not be allowed to call themselves “financial advisors” or “wealth managers” unless they are registered with SEBI as advisors.

Related Post

latest News

  • PM Cares fund need not be transferred to NDRF: SC

    The Supreme Court on August 18 ruled that the funds from the PM-CARES Fund need not be transferred to the National Disaster Relief Fund (NDRF) and ind...

    Read More
  • ED Arrests Bhushan Power & Steel Ltd’s Former CMD Sanjay Singhal In Connection With Money Laundering Probe

    The Enforcement Directorate (ED) has arrested former Chairman and Managing Director of Bhushan Power & Steel Limited (BPSL) Sanjay Singhal in connecti...

    Read More
  • High Court of England and Wales dismisses Vijay Mallya’s appeal against extradition order

    The High Court of England and Wales (High Court) dismissed Vijay Mallya’s (Appellant) appeal against the order of his extradition to India in relati...

    Read More