“Both the RBI and the Sebi are studying the issue...,” sources said. The present regulatory guidelines permit banks offering wealth management services to give only non-discretionary or advisory services.
However, over the time there has been a “blurring of activities” between offering non-discretionary and discretionary services (like investment management), sources said.
“Banks may actually be offering a greater gamut of services than is permitted under extant guidelines,” sources said.
The RBI in consultation with Sebi had earlier circulated a questionnaire to banks offering services. The RBI, Sebi and the government began to look at ways to revise the norms for offering by banks after alleged multi-crore fraud at Citibank’s Gurgaon branch came to light late last year, sources added.
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