SEBI proposes new norms for mutual fund distributors, advisors

MUMBAI, June 23: Market regulator, the Securities and Exchange Board of India (SEBI) has proposed a new set of rules for regulating banks, non-banking financial corporations (NBFCs) and other corporate bodies which offer investment advice.
The proposed norms state that mutual fund distributors are allowed to explain the material facts of the MF and the associated risk factors of the scheme.
They are explicitly not allowed to give any investment advice. SEBI also states that the employees of registered investment advisors should be a graduate in any discipline.
Previously, SEBI allowed only a post-graduate or a graduate with five years experience in the financial services industry. This rule is still applicable to an individual advisor, SEBI clarified.
The amended proposal also includes a segregation of advisory and product distribution businesses of Investment advisors. If implemented, companies providing investment advisory services will have to provide a separate subsidiary. At present, SEBI allows for these services to be provided through a separate division or  department.
SEBI has provided six months of time for existing entities, it added. (UNI)

LEAVE A REPLY

Please enter your comment!
Please enter your name here