TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024
X X X X Extracts X X X X
X X X X Extracts X X X X
....ause (ac), the words "and investment products" shall be omitted. (2) clause (ga) shall be omitted. (3) in clause (l), (a) the words and symbol "or investment products," appearing after the words "otherwise dealing in securities" and after the words "portfolio containing securities" shall be omitted. (b) after the proviso, the following proviso shall be inserted, namely: - "Provided further that trading calls shall not be considered as investment advice for purpose of these regulations." (4) in clause (m), after the words "group of persons and includes" and before the words "any person who holds out", the words and symbol "a part-time investment adviser or" shall be inserted; (5) after clause (pa) and before clause (q), the following clause shall be inserted, namely: - "(pb) "other business activity or employment" means such business activity or employment which is not related to securities and: a. it does not involve handling or managing of money or funds of client or person; or b. it is not related to providing advice or recommendation to any client or person in respect of any products or ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th" shall be substituted with the word "deposit". III. in regulation 7, (1) in sub-regulation (1), (a) in clause (a), (i) after the words "A professional qualification or" and before the words and symbol "postgraduate degree", the words "graduate degree or", shall be inserted. (ii) after the words "actuarial science" and before the words "from a university", the words "or other financial services as may be specified", shall be inserted. (b) clause (b) shall be omitted. (c) clause (c) shall be substituted with the following, namely: - "(c) Persons associated with investment advice shall, at all times, have a minimum qualification of graduate degree in any discipline from a university or institution recognized by the Central Government or any State Government or a recognized foreign university or institution:" (d) in second proviso, the words and symbols "and (b)", shall be omitted. (2) sub-regulation (2) shall be substituted with the following, namely: - "(2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duals registered as investment advisers whose number of clients exceed three hundred at any point of time or the fee collected during the financial year exceeds three crore rupees, whichever is earlier shall - (i) apply for grant of in-principle registration as non-individual investment adviser; (ii) the in-principle registration shall be valid for a period of three months to assist in the transition from registration as individual investment adviser to non-individual investment adviser; (iii) on completion of the transition period or upon grant of certificate of registration as nonindividual investment adviser, whichever is earlier, the investment adviser shall surrender his registration as individual investment adviser." (3) after clause (e), the following clause shall be inserted, namely: - "(f) the number of clients of a part-time investment adviser shall not exceed seventy-five in total at any point of time." VII. in regulation 15, (1) after sub-regulation (13), the following sub-regulation shall be inserted, namely: - "(14) An investment adviser who uses Artificial Intelligence tools, irrespective of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ulation 20 shall be substituted with the following, namely: - "20. (1) A non-individual investment adviser shall appoint either: (i) a compliance officer; or (ii) an independent professional who is a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India or Institute of Cost Accountants of India or member of any other professional body as may be specified by the Board, provided such a professional holds a relevant certification from NISM, as may be specified by the Board; who shall be responsible for monitoring the compliance by the investment adviser in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by the Board. (2) Where independent professional referred in sub-regulation (1) of this regulation is appointed for monitoring compliance, the principal officer shall submit an undertaking to the Board or the body or body corporate recognized under regulation 14 of these regulations to the effect that the principal officer shall be responsible for monitoring the compliance in respect of the requirements of the Act, regulations, notifications, gui....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ivity as investment adviser and other business activity and shall ensure that its business activities as investment adviser are clearly segregated from its other business activity or employment." (2) after Form B, the following "Form C" shall be inserted, namely: - "FORM C Securities and Exchange Board of India (Investment Adviser) Regulations, 2013 [See regulation 9] Certificate of registration as Part-Time Investment Adviser I. In exercise of the powers conferred by sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), read with the regulations made there under, the Board hereby grants a certificate of registration to ___________________as a part-time investment adviser subject to the conditions specified in the Act and in the regulations made thereunder. II. The Registration Number of the part-time investment adviser is IN/IA/_____________. III. This certificate of registration shall be valid till it is suspended or cancelled by the Board Date: Place: MUMBAI By Order Sd/- For and on behalf of Securities and Ex....