Wealth management services norms soon

“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.