Photo of Rohan Priyadarshi

Associate in the Investment Funds Practice at Mumbai office of Cyril Amarchand Mangaldas. He advises domestic fund managers on structuring of alternative investment fund structures and drafting of associated fund documents such as placement memorandums and contribution agreements. He has also advised institutional investors in their investment in domestic funds and regularly advises investment advisors and portfolio managers on regulatory issues.  He can be reached at rohan.priyadarshi@cyrilshroff.com

SEBI Clarifies Key Aspects of Investment Advisers Regulations through Informal Guidance

The Securities and Exchange Board of India (“SEBI”), through its interpretive letter, issued upon the request of Paytm Money Limited (“Paytm”) under the SEBI (Informal Guidance) Scheme, 2003 (“Informal Guidance Scheme”), on April 09, 2021, has clarified that investment advisers (“IAs”), registered with SEBI under the SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”), may not: (i) be reimbursed from the asset management companies for any expenses incurred for services rendered to their clients, even though the adviser may not be charging any advisory or execution fees; (ii) seek electronic consent from clients prior to rendering any investment advice, instead of a signed investment advisory agreement; and (iii) appoint a department head, who is not a managing director or designated director or managing chairman or executive chairman or any other equivalent management body of the IA, as its ‘principal officer’.
Continue Reading SEBI Clarifies Key Aspects of Investment Advisers Regulations through Informal Guidance