**Summary:**
This circular, reference number SEBI/HO/IMD/DF1/CIR/P/2020/31 dated February 28, 2020, issued by the Securities and Exchange Board of India (SEBI), provides clarifications to the Operating Guidelines for Investment Advisers (IAs) in International Financial Services Centres (IFSC), initially outlined in circular SEBI/HO/IMD/DF1/CIR/P/2020/04 dated January 9, 2020.
The circular revises the net worth requirement for registered Investment Advisers in IFSC to USD 700,000, as per para 8(a) of the initial circular. Additionally, it clarifies that existing recognized entities within the IFSC can apply for IA registration without the need to establish a separate company or Limited Liability Partnership (LLP), as referenced in para 3 of the original circular.
This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect investor interests and regulate the securities market.
The circular is accessible on the SEBI website (www.sebi.gov.in) under "Info for Investment Advisers" and "Legal framework Circulars".
For further information, contact Naveen Sharma, General Manager, Investment Management Department, at 022-26449709 or via email at naveens@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): Regulatory body for the securities market in India, responsible for protecting investors and promoting market development.
Investment Advisers (IA): Entities providing investment advice, regulated by SEBI.
International Financial Services Centre (IFSC): Special economic zone facilitating financial services for non-residents and residents, regulated by SEBI in this context.
SEBIHOIMDDF1CIRP202004: SEBI circular number related to Operating Guidelines for Investment Advisers in IFSC.
Securities and Exchange Board of India Act, 1992: The act of the Indian Parliament under which SEBI was established and derives its powers.
USD 700,000: The revised networth requirement for registered Investment Advisers in IFSC.
Naveen Sharma: General Manager, Investment Management Department at SEBI.
Investment Management Department: Department within SEBI responsible for investment management related regulations.
CIRCULAR
SEBI/HO/IMD/DF1/CIR/P/2020/31 February 28, 2020
All Investment Advisers
Sir / Madam
Subject: Operating Guidelines for Investment Advisers in International Financial
Services Centre (IFSC) – Clarifications
1. SEBI, vide circular SEBI/HO/IMD/DF1/CIR/P/2020/04 dated January 9, 2020 issued
Operating Guidelines for Investment Advisers in International Financial Services
Centre.
2. Based on the representation received from the stakeholder regarding para 8(a) of the
said circular, the networth requirement for registered Investment Adviser in IFSC is
revised to USD 700,000.
3. In respect of para 3 of the said circular, it is clarified that existing recognized entities
in IFSC can also apply for IA registration without forming a separate company or LLP.
4. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of investors
in securities and to promote the development of, and to regulate the securities market.
5. The circular is available on SEBI website at www.sebi.gov.in under the categories
“Info for – Investment Advisers” and "Legal framework - Circulars".
Yours faithfully,
Naveen Sharma
General Manager
Investment Management Department
Ph: 022-26449709
Email: naveens@sebi.gov.in