SEBI To Issue Consultation Paper To Ease Norms To Register Investment Advisors

Early next week, the Securities and Exchange Board of India will release a consultation paper aimed at simplifying the process of becoming a registered investment advisor, according to a senior official who spoke on Friday.

This initiative is part of SEBI's broader effort to address the activities of unregulated financial influencers. Recently, SEBI's board approved new measures aimed at limiting the influence of these "fin-influencers". These measures primarily involve monitoring and regulating the segment through partnerships with entities already overseen by SEBI.

Senior SEBI officials in the recent past have said that challenges to get registered as an investment advisor are among the reasons for growth in the problematic fin-influencers segment.

Kamlesh Varshney, a whole-time member of SEBI, announced at FICCI's CAPAM event that the capital markets regulator will release a consultation paper by Monday or Tuesday. This paper will outline proposals to ease the registration requirements for investment advisors and research analysts.

The registered investment advisors have said that getting and maintaining the registration is an onerous task due to which their numbers are low.

Further, Varshney said the securities market regulator will also introduce a "specified digital platform" to provide clarity to investors on who is registered and to streamline payments and transactions.

He said that steps will also be taken for operationalising performance validation agency, where NSE has shown a solution.

(With Inputs From PTI)