Date: 2021-03-16Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by sub section 1 of section 30 read with clause b of sub section 2 of section 11 of the Securities and Exchange Board of India Act
## Report on the Securities and Exchange Board of India Investment Advisers Second Amendment Regulations, 2021
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Investment Advisers Second Amendment Regulations, 2021, based solely on the official gazette notification provided. This amendment modifies the existing Securities and Exchange Board of India Investment Advisers Regulations, 2013, specifically concerning the qualification criteria for investment advisors. The core purpose of the amendment is to broaden and clarify the acceptable professional qualifications for individuals seeking to become registered investment advisors. The key finding is a revised definition of acceptable qualifications, expanding the scope to include specific postgraduate programs and professional certifications.
**2. Introduction:**
This report aims to provide an informative overview of the Securities and Exchange Board of India Investment Advisers Second Amendment Regulations, 2021, based on the text of the official notification. The report analyzes the amendment's objectives, key changes, affected parties, and potential impact on the investment advisory landscape.
**3. Policy Overview:**
* This is an amendment to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
* The core objective, as inferred from the text, is to revise the eligibility criteria for individuals seeking to register as investment advisors by amending Regulation 7.
**4. Background and Rationale:**
The amendment appears to address the perceived need to broaden the scope of acceptable qualifications for investment advisors. The original regulations might have been considered too restrictive, potentially limiting the pool of qualified professionals. The amendment likely aims to recognize a wider range of educational backgrounds and professional certifications as valid pathways to becoming a registered investment advisor.
**5. Key Provisions / Changes:**
This amendment focuses on altering clause (a) of sub-regulation (1) of regulation 7 of the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
* **Specific Part Changed:** Clause (a) of sub-regulation (1) of regulation 7.
* **New Rule/Provision:** The original clause is substituted with a new clause specifying the acceptable professional qualifications. The new clause, designated as "(a)", broadens the eligible qualifications to include:
* A professional qualification or postgraduate degree or postgraduate diploma of minimum two years duration in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a recognized institution.
* A professional qualification by completing a Post Graduate Program in the Securities Market Investment Advisory from NISM of a duration not less than one year.
* A professional qualification by obtaining a CFA Charter from the CFA Institute.
* **Difference/Effect of Change:** The change broadens the acceptable qualifications by explicitly including a one year post graduate program in securities market investment advisory from NISM and the CFA charter from the CFA institute. The original regulations presumably lacked explicit mention of these qualifications.
**6. Target Audience and Stakeholders:**
Based on the provided text, the direct target audience and stakeholders are:
* Individuals seeking to register as investment advisors with SEBI.
* Educational institutions and professional certification providers, specifically NISM and the CFA Institute, whose programs are now explicitly recognized.
* Existing investment advisors, as they may need to ensure their qualifications meet the amended requirements.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Securities and Exchange Board of India (SEBI) is the responsible agency for implementing and enforcing these regulations.
* **Timelines/Procedures:** The amendment came into force on the date of its publication in the Official Gazette, March 16, 2021. The specific procedures for demonstrating compliance with the new qualification requirements would likely be detailed in separate SEBI circulars or guidelines (not included in this text).
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of these specific changes is:
* A larger pool of eligible candidates for registration as investment advisors.
* Increased recognition of specialized professional qualifications related to securities markets and investment advisory.
* Potentially, improved quality and diversity of investment advisory services due to a broader range of qualified professionals entering the field.
**9. Conclusion:**
The Securities and Exchange Board of India Investment Advisers Second Amendment Regulations, 2021, represent a targeted effort to refine the qualification requirements for investment advisors. By broadening the scope of acceptable qualifications, this amendment has the potential to significantly impact the investment advisory landscape by expanding the pool of eligible professionals and fostering a more diverse range of expertise within the industry. The explicit recognition of NISM postgraduate programs and CFA charters as qualifying credentials represents a notable shift.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body responsible for securities market regulation in India.
Securities and Exchange Board of India Act, 1992: The Act of the Indian Parliament that established the Securities and Exchange Board of India.
Securities and Exchange Board of India Investment Advisers Regulations, 2013: Regulations pertaining to investment advisors as defined by the Securities and Exchange Board of India.
Securities and Exchange Board of India Investment Advisers Second Amendment Regulations, 2021: Amendment regulations to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
Mumbai: City in Maharashtra, India; Location of the notification.
Central Government: The Union Government of India.
State Government: The government of an individual state within India.
NISM: An institution that provides a Post Graduate Program in the Securities Market Investment Advisory.
CFA Institute: An organization that provides the CFA Charter professional qualification.
Securities and Exchange Board of India Payment of Fees Amendment Regulations, 2014: Amendment regulations to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
Securities and Exchange Board of India Change in Conditions of Registration of Certain Intermediaries Amendment Regulations, 2016: Amendment regulations to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
Securities and Exchange Board of India Regulatory Sandbox Amendment Regulations, 2020: Amendment regulations to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
Securities and Exchange Board of India Investment Advisers Amendment Regulations, 2020: Amendment regulations to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
Securities and Exchange Board of India Investment Advisers Amendment Regulations, 2021: Amendment regulations to the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
AJAY TYAGI: Chairman of the Securities and Exchange Board of India.
New Delhi: City in Delhi, India; Location of the Government of India Press.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-17032021-225950
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 101] िई कदल्ली, मगं लिार, माच ड16, 2021/फाल्ग िु 25, 1942
No. 101] NEW DELHI, TUESDAY, MARCH 16, 2021/PHALGUNA 25, 1942
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
मुम्बई, 16 माचड, 2021
भारतीय प्रजतभजू त और जिजिमय बोडड [जिजिधाि (जिििे ) सलाहकार] (दसू रा सिं ोधि) जिजियम, 2021
स.ं सबे ी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/11.—भारतीय प्रजतभूजत और जिजिमय बोडड, भारतीय प्रजतभूजत
और जिजिमय बोडड अजधजियम, 1992 (1992 का 15) की धारा 11 की उप-धारा (2) के खडं (ख) के साथ पठित धारा 30
की उप-धारा (1) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि
(जििेि) सलाहकार] जिजियम, 2013 का और संिोधि करि े के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत,्-
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] (दसू रा संिोधि)
जिजियम, 2021 कहा िा सकेगा ।
2. ि े रािपत्र म ें उिके प्रकािि की तारीख को प्रिृत्त (लाग)ू होंगे ।
3. भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] जिजियम, 2013 म,ें -
I. जिजियम 7 के उप-विवियम (1) का खंड (क), जिम्नजलजखत खंड स ेप्रविस्ट्थाजपत हो िाएगा, अथाडत्, -
“(क) केन्द्रीय सरकार या ककसी राज्य सरकार द्वारा मान्द्यताप्राप्त जिश्वजिद्यालय या संस्ट्था से अथिा
मान्द्यताप्राप्त जिदेिी जिश्वजिद्यालय या संस्ट्था या संघ (असोजसएिि) से जित्त (फाइिेंस), अकाउंटेंसी,
कारबार प्रबंधि (जबििेस मैिेिमेंट), िाजणज्य (कॉमसड), अथडिास्त्र, पूूँिी बािार (कैजपटल माकेट),
1643 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
बैंककंग, बीमा या एक्चुठरयल साइंस म ें व्यािसाजयक योग्यता (अहतडा) या स्नातकोत्तर जडग्री या
स्नातकोत्तर जडप्लोमा (न्द्यूितम दो िर्षों की अिजध का) अथिा राष्ट्रीय प्रविभूवि बाजार संस्थाि से
प्रविभूवि बाजार (वििेश सलाह) [वसक्यूररटीज़ माकेट (इन्िेस्टमेंट एडिाइज़री)] म ेंकम स ेकम एक िर् ष
की अिवि का स्नािकोत्तर कायषक्रम पूरा करके हावसल की गई व्यािासावयक योग्यिा अथिा सीएफए
इंजस्ट्टट्यूट की ओर स ेप्रदाि ककया जािे िाला सीएफए चाटडर प्राप्त करके हावसल की गई व्यािासावयक
योग्यिा;”
अिय त्यागी, अध्यक्ष
[ जिज्ञापि III/4/असा./537/2020-21]
पाद ठटप्पण:
1. भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] जिजियम, 2013, स.ं एल.ए.डी.-
एि.आर.ओ./िी.एि./2012-13/31/1778 द्वारा, 21 िििरी, 2013 को भारत के रािपत्र म ेंप्रकाजित हुए थ े।
2. भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] जिजियम, 2013 तत्पश्चात्,-
(1) 23 मई, 2014 को भारतीय प्रजतभूजत और जिजिमय बोड ड (फीस का संदाय) (संिोधि) जिजियम, 2014, सं.
एल.ए.डी.-एि.आर.ओ./िी.एि./2014-15/03/1089, द्वारा
(2) 8 कदसम्बर, 2016 को भारतीय प्रजतभूजत और जिजिमय बोडड [कुछ मध्यिर्तडयों (इंटरमीजडयरीज़) के रजिस्ट्रीकरण
की ितों म ें पठरितडि] (संिोधि) जिजियम 2016, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/023,
द्वारा
(3) 17 अप्रलै , 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधि) जिजियम 2020, स.ं
सेबी/एल.ए.डी.-एिआरओ/िीएि/2020/10, द्वारा
(4) 3 िुलाई, 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] (संिोधि) जिजियम,
2020, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2020/22, द्वारा
(5) 11 जििरी, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] (संिोधि)
जिजियम, 2021, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/04, द्वारा संिोजधत हुए थ े।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 16th March, 2021
SECURITIES AND EXCHANGE BOARD OF INDIA (INVESTMENT ADVISERS) (SECOND
AMENDMENT) REGULATIONS, 2021
No. SEBI/LAD-NRO/GN/2021/11.—In exercise of the powers conferred by sub-section (1) of section 30
read with clause (b) of sub-section (2) of section 11 of the Securities and Exchange Board of India Act, 1992 (15 of
1992), the Securities and Exchange Board of India hereby makes the following regulations to further amend the
Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, namely, –
1. These Regulations may be called the Securities and Exchange Board of India (Investment Advisers) (Second
Amendment) Regulations, 2021.
2. They shall come into force on the date of their publication in the Official Gazette[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
3. In the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013,-
I. clause (a) of sub-regulation (1) of regulation 7 shall be substituted with the following clause,
namely, -
“(a) A professional qualification or post-graduate degree or post graduate diploma (minimum
two years in duration) in finance, accountancy, business management, commerce, economics,
capital market, banking, insurance or actuarial science from a university or an institution
recognized by the Central Government or any State Government or a recognised foreign
university or institution or association or a professional qualification by completing a Post
Graduate Program in the Securities Market (Investment Advisory) from NISM of a duration not
less than one year or a professional qualification by obtaining a CFA Charter from the CFA
Institute;”
AJAY TYAGI, CHAIRMAN
[ADVT.-III/4/Exty./537/2020-21]
Footnote:
1. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were published in the
Gazette of India on January 21, 2013 vide No. SEBI/LAD-NRO/GN/2012-13/31/1778.
2. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were subsequently
amended on, –
(1) 23rd May, 2014 by the Securities and Exchange Board of India (Payment of Fees) (Amendment)
Regulations, 2014 vide LAD-NRO/GN/2014-15/03/1089.
(2) 8th December, 2016 by the Securities and Exchange Board of India (Change in Conditions of
Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide No. SEBI/LAD-
NRO/GN/2016-17/023.
(3) 17th April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox)
(Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10.
(4) 3rd July, 2020 by the Securities and Exchange Board of India (Investment Advisers) (Amendment)
Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/22.
(5) 11th January, 2021 by the Securities and Exchange Board of India (Investment Advisers)
(Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/04.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.