To further strengthen the conduct of investment advisers, markets regulator Sebi on Friday asked them to do proper risk profiling of clients and obtain their consent on the same before providing any advice to such investors.
The regulator also restrained investment advisers from providing a free trial for any product and service.
The measures, aimed at further strengthening the conduct of investment advisers while providing investment advice and to protect the interest of investors seeking their advice, will come into effect from January 1, 2020, the regulator said in a circular.
The Securities and Exchange Board of India (Sebi) noted that investment advisers (IAs) are providing advice on a free trial basis without considering
"The IAs shall not provide
The regulator said investment advisers will provide investment advice only after completing risk profile of the client based on information provided by them and need to obtain consent of the client on
To bring transparency in dealing with the clients, Sebi has asked investment advisers (IAs) to accept fees through banking channels only. It has clarified that IAs shall not accept cash deposits.
To enable the investors to take
Also, they need to display information pertaining to number of grievances pending and reasons for such
The information should be displayed using a proper font size and should be made available on
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