Most Important Terms and Conditions require IAs to disclose fees, consent for trades, ban guaranteed returns, and manage conflicts. SEBI requires Investment Advisers to include standardized Most Important Terms and Conditions (MITC) in advisory agreements, prohibiting acceptance of client funds or securities, banning assured/guaranteed return schemes, and prohibiting execution of trades without explicit client consent. The MITC set fee and payment rules including prescribed maximums for eligible clients, limited advance fees with pro rata refunds and capped breakage fee, non-cash payment modes, mandatory risk profiling and suitability analysis, conflict-of-interest management favouring non-commission plans, specified grievance redressal steps, and disclosure when services fall outside SEBI's regulatory purview.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Most Important Terms and Conditions require IAs to disclose fees, consent for trades, ban guaranteed returns, and manage conflicts.
SEBI requires Investment Advisers to include standardized Most Important Terms and Conditions (MITC) in advisory agreements, prohibiting acceptance of client funds or securities, banning assured/guaranteed return schemes, and prohibiting execution of trades without explicit client consent. The MITC set fee and payment rules including prescribed maximums for eligible clients, limited advance fees with pro rata refunds and capped breakage fee, non-cash payment modes, mandatory risk profiling and suitability analysis, conflict-of-interest management favouring non-commission plans, specified grievance redressal steps, and disclosure when services fall outside SEBI's regulatory purview.
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