Saturday, August 1, 2020

Impact of changes in Investment Advisers regulations source Economic times

Important features of Investment Advisor Regulations 

 One of the positive amendments is client-level segregation 
 
The qualification requirements for an IA has gone up to professional qualification or post graduate degree or diploma. Also, they now need to have five years of relevant experience along with an appropriate certification accredited to National Institute of Securities Markets (NISM)

Net worth requirement

Networth requirements have gone up from Rs 1 lakh to Rs 5 lakh for individuals. For corporates, it has gone up from Rs 25 lakh to Rs 50 lakh. Existing IAs are allowed three years from the date when the notification will come into effect to comply with this requirement

An individual IA who has 150 clients should compulsorily corporatise. The provision to corporatise may be seen as being in the client's interest


For more details please  read the following link

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