## Report on the Securities and Exchange Board of India Investment Advisers Amendment Regulations, 2021
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Investment Advisers Amendment Regulations, 2021. This amendment, published on January 11, 2021, modifies the Securities and Exchange Board of India Investment Advisers Regulations, 2013. The key changes involve the addition of a new requirement related to membership in a recognized body or corporate, and revisions to the registration and application fees for investment advisors, differentiating between individuals/firms and body corporates/LLPs. The amendments aim to refine the regulatory framework for investment advisors and adjust the associated fees.
**2. Introduction:**
The purpose of this report is to provide an informative overview of the Securities and Exchange Board of India Investment Advisers Amendment Regulations, 2021, based solely on the text provided. This report aims to clarify the specific changes introduced by the amendment and their potential implications.
**3. Policy Overview:**
This document amends the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
The core objective, as inferred from the provided text, is to update and refine the existing regulatory framework for investment advisors, specifically regarding membership requirements and fee structures.
**4. Background and Rationale:**
This amendment likely addresses the need to enhance the operational framework for investment advisors registered with SEBI. The addition of a membership requirement with a recognized body or corporate suggests a move towards increased professional standards and accountability within the investment advisory industry. The changes in fees likely reflect an adjustment based on operational costs or a recalibration of the financial burden on different types of investment advisory entities.
**5. Key Provisions / Changes:**
This section focuses on the specific changes introduced by the amendment:
* **Change 1: Membership Requirement (Regulation 6)**
* **Original Policy Section Affected:** Regulation 6 of the Securities and Exchange Board of India Investment Advisers Regulations, 2013.
* **New Rule/Provision:** A new clause 'n' is inserted after clause 'm' in regulation 6, requiring applicants to disclose whether they are members of a recognized body or body corporate as specified under regulation 14. Existing investment advisors must also comply with this requirement in a manner specified by the Board.
* **Difference/Effect:** This amendment introduces a new eligibility criterion for investment advisors, potentially raising the bar for entry into the profession and promoting a baseline level of competency or adherence to professional standards. It also imposes a requirement on *existing* advisors.
* **Change 2: Application and Registration Fees (Second Schedule)**
* **Original Policy Section Affected:** The Second Schedule, clauses 1, 2 and 3 pertaining to application, registration and other fees.
* **New Rule/Provision:** The application and registration fees have been revised and differentiated based on the type of entity:
* **Application Fee:**
* Individuals and Firms: Increased from an unknown prior amount to ₹2,000
* Body Corporate including Limited Liability Partnerships: Increased from an unknown prior amount to ₹10,000
* **Registration Fee (at the time of grant of certificate):**
* Individuals and Firms: Increased from an unknown prior amount to ₹3,000
* Body Corporate including Limited Liability Partnerships: Increased from an unknown prior amount to ₹15,000
* **Other fees:**
* Individuals and Firms: ₹1,000
* Body Corporate including Limited Liability Partnerships: ₹5,000
* **Difference/Effect:** The amendment increases the fees for both application and registration and creates a two-tiered system, where larger entities (body corporates and LLPs) pay higher fees than individual advisors or firms. This change may impact the financial burden on investment advisors, particularly larger organizations.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by these changes are:
* Existing and prospective Investment Advisors registered with SEBI.
* Individuals and firms seeking to register as Investment Advisors.
* Body Corporates, including Limited Liability Partnerships, operating as or seeking to become Investment Advisors.
* Recognized bodies or body corporates as specified under regulation 14.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Securities and Exchange Board of India (SEBI) is the responsible body for implementing and enforcing these amendments.
* **Timelines/Procedures:** The amendment comes into force on the date of its publication in the Official Gazette (January 11, 2021). Existing investment advisors are required to comply with the new membership requirement in a manner to be specified by SEBI. There is no precise timeline given in the text for this.
* **Specific to the amendment:** SEBI will need to define what constitutes a "recognized body or body corporate" for the purpose of the new membership requirement.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes are:
* **Enhanced Professional Standards:** The membership requirement aims to increase the professional standards and accountability of investment advisors.
* **Adjusted Fee Structure:** The revised fee structure likely aims to align the financial burden on investment advisors with the scale of their operations and potentially to cover SEBI's regulatory costs. The differentiation of fees may impact smaller firms/individual advisors differently than larger corporate entities.
* **Improved Regulatory Oversight:** Overall, the changes aim to strengthen SEBI's oversight and regulation of the investment advisory industry.
**9. Conclusion:**
The Securities and Exchange Board of India Investment Advisers Amendment Regulations, 2021, represent a refinement of the existing regulatory framework for investment advisors. By introducing a membership requirement and adjusting fee structures, the amendments seek to enhance professional standards, ensure adequate financial contributions from advisors, and strengthen SEBI's regulatory oversight. These changes are significant for both existing and prospective investment advisors, particularly body corporates and LLPs, as they navigate the evolving regulatory landscape.
Key Entities Referenced
SECURITIES AND EXCHANGE BOARD OF INDIA: Regulatory body for securities and commodity market in India.
Mumbai, Maharashtra: Location of the Securities and Exchange Board of India office issuing the notification.
Securities and Exchange Board of India Act, 1992: The Act of Parliament of India that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Investment Advisers Regulations, 2013: Regulations pertaining to investment advisers issued by the Securities and Exchange Board of India.
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.
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.
Ajay Tyagi: Chairman of the Securities and Exchange Board of India.
New Delhi: Location of Government of India Press.
Mayapuri, New Delhi: Location of Government of India Press.
Delhi: Location of Controller of Publications.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-एम.एxचxx.G-अID.-E1x1xx0 12021-224334
CG-MH-E-11012021-224334
ऄसाधारण
EXTRAORDINARY
भाग III—खण्ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 13] नइ कदल्ली, सोमिार, जनिरी 11, 2021/ पौष 21, 1942
No. 13] NEW DELHI, MONDAY, JANUARY 11, 2021/PAUSHA 21, 1942
भारतीय प्रजतभजू त और जिजनमय बोड ड
ऄजधसचू ना
मुम्बइ, 11 जनिरी, 2021
भारतीय प्रजतभजू त और जिजनमय बोड ड
[जिजनधान (जनििे ) सलाहकार] (सिं ोधन) जिजनयम, 2021
स.ं सबे ी/एल.ए.डी.-एन.अर.ओ./जी.एन./2021/04.—बोडड, भारतीय प्रजतभूजत और जिजनमय बोडड ऄजधजनयम,
1992 (1992 का 15) की धारा 11 की ईप-धारा (2) के खडं (ख) के साथ पठित धारा 30 की ईप-धारा (1) द्वारा प्रदत्त
िजियों का प्रयोग करत े हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजनमय बोडड [जिजनधान (जनिेि) सलाहकार] जिजनयम,
2013 का और संिोधन करन े के जलए जनम्नजलजखत जिजनयम बनाता ह,ै ऄथाडत,्-
1. आन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोडड [जिजनधान (जनिेि) सलाह ] (संिोधन) जिजनयम,
2021 कहा जा सकेगा ।
2. ि े राजपत्र म ें ईनके प्रकािन की तारीख को प्रिृत्त (लाग)ू होंगे ।
3. भारतीय प्रजतभूजत और जिजनमय बोडड [जिजनधान (जनिेि) सलाहकार] जिजनयम, 2013 में,-
I. जिजनयम 6 के खंड (ड) के पश्चात्, जनम्नजलजखत खंड ऄतं ःस्ट्थाजपत ककया जाएगा, ऄथाडत्, -
“(ढ) क्या अिेदक जिजनयम 14 के तहत जनधाडठरत मान्यताप्राप्त जनकाय ( ) या जनगजमत
जनकाय (बॉडी कारपोरेट) का सदस्ट्य ह:ै
144 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
परंत ुयह कक मौजूदा जनिेि सलाहकार आस खंड के तहत दी हुइ ऄपक्षे ा का ईसी प्रकार पालन
करेंग ेजैसा बोडड द्वारा जनधाडठरत ककया जाए ।”
II. दसू री ऄनुसूची म,ें -
i. खंड 1 म,ें
क. ईप-खंड (क) जनम्नजलजखत स ेप्रजतस्ट्थाजपत हो जाएगा, ऄथाडत,् -
“एकल ( ) तथा फमों हतेु : ` 2,000”
ख. ईप-खंड (ख) जनम्नजलजखत स ेप्रजतस्ट्थाजपत हो जाएगा, ऄथाडत,् -
“जनगजमत जनकाय ( ) [जजसमें सीजमत दाजयत्ि भागीदाठरयााँ (जलजमटेड
लायजबजलटी पाटडनरजिप) िाजमल ह]ैं हतेु : ` 10,000”
ii. खंड 2 जनम्नजलजखत से प्रजतस्ट्थाजपत हो जाएगा, ऄथातड ्,-
“2. स स
स :
क. एकल ( ) तथा फमों हतेु : ` 3,000
ख. जनगजमत जनकाय ( ) [जजसमें सीजमत दाजयत्ि भागीदाठरयााँ (जलजमटेड
लायजबजलटी पाटडनरजिप) िाजमल ह]ैं हतेु : ` 15,000”
iii. खंड 3 जनम्नजलजखत से प्रजतस्ट्थाजपत हो जाएगा, ऄथातड ्, –
“3. स जनिेि सलाहकार रजजस्ट्रीकरण प्रमाणपत्र प्रदान ककया गया हो, ह ऄपना
रजजस्ट्रीकरण प्रिृत्त (लागू) रखने के जलए, यथाजस्ट्थजत, रजजस्ट्रीकरण प्रमाणपत्र प्रदान ककए जान े
की तारीख से या भारतीय प्रजतभूजत और जिजनमय बोडड [कुछ मध्यिर्ततयों (आंटरमीजडयरीज़) के
रजजस्ट्रीकरण की ितों म ेंपठरितडन] (संिोधन) जिजनयम, 2016 के प्रारंभ से पूिड प्रदान ककए
गए रजजस्ट्रीकरण प्रमाणपत्र की तारीख से, प्रत्येक पांच िषों ह जनम्नानुसार जनधाडठरत फीस
ईस ऄिजध के समाप्त होन ेस पिूड तीन महीनों के भीतर ऄदा करेगा, जजस ऄिजध के जलए फीस
ऄदा की जा चुकी हो :
(क) एकल ( ) तथा फमों हतेु : ` 1,000
(ख) जनगजमत जनकाय ( ) [जजसमें सीजमत दाजयत्ि भागीदाठरयााँ (जलजमटेड
लायजबजलटी पाटडनरजिप) िाजमल ह]ैं हतेु : ` 5,000”
ऄजय त्यागी, ऄध्यक्ष
[जिज्ञापन-III/4/ऄसा./449/2020-21]
पाद ठटप्पण:
1. भारतीय प्रजतभूजत और जिजनमय बोडड [जिजनधान (जनिेि) सलाहकार] जिजनयम, 2013, स.ं एल.ए.डी.-
एन.अर.ओ./जी.एन./2012-13/31/1778 द्वारा, 21 जनिरी, 2013 को भारत के राजपत्र म ेंप्रकाजित हुए थ े।
2. भारतीय प्रजतभूजत और जिजनमय बोडड [जिजनधान (जनिेि) सलाहकार] जिजनयम, 2013 तत्पश्चात्,-
(1) 23 मइ, 2014 को भारतीय प्रजतभूजत और जिजनमय बोड ड (फीस का संदाय) (संिोधन) जिजनयम, 2014,
सं. एल.ए.डी.-एन.अर.ओ./जी.एन./2014-15/03/1089, द्वारा
(2) 8 कदसम्बर, 2016 को भारतीय प्रजतभूजत और जिजनमय बोडड [कुछ मध्यिर्ततयों (आंटरमीजडयरीज़) के रजजस्ट्रीकरण
की ितों म ें पठरितडन] (संिोधन) जिजनयम 2016, स.ं सेबी/एल.ए.डी.-एन.अर.ओ./जी.एन./2016-17/023,
द्वारा[भाग III—खण् ड 4] भारत का राजपत्र : ऄसाधारण 3
(3) 17 ऄप्रलै , 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यलू ेटरी सैंडबॉक्स) (संिोधन) जिजनयम 2020,
स.ं सेबी/एल.ए.डी.-एनअरओ/जीएन/2020/10, द्वारा
(4) 3 जुलाइ, 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड [जिजनधान (जनिेि) सलाहकार] (संिोधन) जिजनयम,
2020, सं. सेबी/एल.ए.डी.-एन.अर.ओ./जी.एन./2020/22, द्वारा संिोजधत हुए थ े ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 11th January, 2021
SECURITIES AND EXCHANGE BOARD OF INDIA (INVESTMENT ADVISERS)
(AMENDMENT) REGULATIONS, 2021
No. SEBI/LAD-NRO/GN/2021/04.—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 Board 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) (Amendment) Regulations, 2021.
2. They shall come into force on the date of their publication in the Official Gazette
3. In the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, -
I. after clause (m) of regulation 6, the following clause shall be inserted, namely, -
“(n) Whether the applicant is a member of a recognized body or body corporate as
specified under regulation 14:
Provided that the existing investment advisers shall comply with the requirement under
this clause in such manner as may be specified by the Board.”
II. in the Second Schedule, -
i. in clause 1,
a. sub-clause (a) shall be substituted with the following, namely, -
“For individuals and firms: ₹ 2,000”
b. sub-clause (b) shall be substituted with the following, namely, -
“For body Corporate including Limited Liability Partnerships:
₹ 10,000”
ii. clause 2 shall be substituted with the following, namely,-
―2. Every applicant shall pay registration fee at the time of grant of
certificate by the Board as under:
a. For individuals and firms: ₹ 3,000
b. For body Corporate including Limited Liability Partnerships:
₹ 15,000”
iii. in clause 3,
a. the words “prescribed at paragraph 2 above” shall be substituted with
the words and symbol “specified below,”
b. after the words “has been paid”, the symbol “.” shall be substituted
with the symbol “:”4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
c. after the newly inserted “:”, the following sub-clauses shall be inserted,
namely, -
“(a) for individuals and firms: ₹ 1,000
(b) for Body Corporate including Limited Liability Partnerships:
₹ 5,000”
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./449/2020-21]
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.
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.