{"id":3859,"date":"2021-04-05T06:45:08","date_gmt":"2021-04-05T06:45:08","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3859"},"modified":"2021-04-05T06:48:10","modified_gmt":"2021-04-05T06:48:10","slug":"sebi-investment-advisers-second-amendment-regulations-2021","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/sebi-investment-advisers-second-amendment-regulations-2021\/","title":{"rendered":"SEBI (Investment Advisers) (Second Amendment) Regulations 2021: A Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">On 16.03.2021, the Securities and\nExchange Board of India (SEBI) has passed Notification No. SEBI\/ LAD &#8211; NRO\/ GN\/\n2021\/ 11, to pass the SEBI (Investment Advisers) (Second Amendment) Regulations\n2021. The said regulations aim to further amend the SEBI (Investment Advisers)\nRegulations 2021 and will come into effect from the date of publication.<\/p>\n\n\n\n<p>Further, it shall be noted that SEBI has\npassed the notification by exercising the powers conferred under section 30 (1)\nread with section (11) (2) (b) of the Securities and Exchange Board of India\nAct 1992.<\/p>\n\n\n\n<p>In this learning blog, we will discuss\nin depth the notion of Investment Advisers, together with key changes made by\nway of the SEBI (Investment Advisers) (Second Amendment) Regulations 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa7404bb69\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa7404bb69\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-investment-advisers-second-amendment-regulations-2021\/#Concept_of_Investment_Advisers\" title=\"Concept of Investment Advisers\">Concept of Investment Advisers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-investment-advisers-second-amendment-regulations-2021\/#Key_Provisions_of_the_SEBI_Investment_Advisers_Second_Amendment_Regulations_2021\" title=\"Key Provisions of the SEBI (Investment Advisers) (Second Amendment) Regulations 2021\">Key Provisions of the SEBI (Investment Advisers) (Second Amendment) Regulations 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-investment-advisers-second-amendment-regulations-2021\/#Substitution_of_Regulation_7_1_a\" title=\"Substitution of Regulation 7 (1) (a)\">Substitution of Regulation 7 (1) (a)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-investment-advisers-second-amendment-regulations-2021\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Investment_Advisers\"><\/span>Concept of Investment Advisers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term <a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-become-an-investment-adviser-in-india\/\" class=\"text-primary\"><strong>Investment Advisers<\/strong><\/a> denotes a person or an organisation that provides financial advice to individuals which match their requirements. That means this SEBI Intermediary plays a fiduciary role with their clients.<\/p>\n\n\n\n<p>Further, it shall be noted that this\nSEBI Intermediary is regulated by the provisions of SEBI (Investment Advisers)\nRegulation 2013. That\nmeans any person or organisation who, for consideration, is involved or willing\nto involve in the business of offering investment advice to clients or other\nindividuals or a group of individual is required to file an application to\nobtain registration under IA Regulations unless explicitly exempted under IA\nRegulations. <\/p>\n\n\n\n<p>Also, it shall be taken under consideration\nthat a sole proprietor is also eligible to make an application for obtaining registration\nas an Investment Adviser. However, the same will be processed as an individual\napplicant.<\/p>\n\n\n\n<p>Moreover, the registered Investment Advisers\nare allowed to provide investment advisory services to Foreign Portfolio\nInvestors. Also, they need to abide by the KYC requirements prescribed by SEBI\nas well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Provisions_of_the_SEBI_Investment_Advisers_Second_Amendment_Regulations_2021\"><\/span>Key Provisions of the SEBI (Investment Advisers) (Second Amendment) Regulations 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key provisions of the SEBI (Investment\nAdvisers) (Second Amendment) Regulations 2021 can be summarised as:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Regulation_7_1_a\"><\/span>Substitution of Regulation 7 (1) (a)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The provisions of the rule 7 sub\nregulation (1) clause (a) of the SEBI (Investment Advisers) Regulations 2013\nwill be substituted with the new one as follows:<\/p>\n\n\n\n<p>(a) A professional qualification or a post graduate degree or a post graduate diploma (with a minimum of two years in duration) in the field of accountancy, business management, finance, commerce, economics, banking, capital market, insurance or actuarial science, from a recognised university or an institution acknowledged by the Central Government or by any State Government, or by any recognised foreign university or association or institution, or a professional qualification by finishing a Post Graduate Program in the Securities Markets (Investment Advisory) from NISM of a period not less than one year, or a professional qualification by acquiring a CFA Charter from the <strong>CFA Institute<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/CFA_Institute\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, Investment Advisors are one of the SEBI Intermediaries who are engaged in providing the financial and investment related advices to their clients. <\/p>\n\n\n\n<p>Further, the SEBI on 16.03.2021, by way of a Notification No. SEBI\/ LAD &#8211; NRO\/ GN\/ 2021\/ 11, has notified the SEBI (Investment Advisors) (Second Amendment) Regulations 2021. Through these rules, SEBI has increased the qualification and education criteria for the individuals or organisations who seek to become Investment Advisors.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/sebi-decides-to-relax-timelines-for-compliance-requirements\/\">SEBI Decides to Relax Timelines for Compliance Requirements\n<\/a><\/mark><\/p>\n\n\n\n<p><strong>Official Copy of the SEBI (Investment Advisers) (Second Amendment) Regulations 2021<\/strong><\/p>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/04\/225950.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">225950<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 16.03.2021, the Securities and Exchange Board of India (SEBI) has passed Notification No. SEBI\/ LAD &#8211; NRO\/ GN\/ 2021\/ 11, to pass the SEBI (Investment Advisers) (Second Amendment) Regulations 2021. The said regulations aim to further amend the SEBI (Investment Advisers) Regulations 2021 and will come into effect from the date of publication. Further, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[64],"tags":[562],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3859"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3859"}],"version-history":[{"count":10,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3859\/revisions"}],"predecessor-version":[{"id":3871,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3859\/revisions\/3871"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3862"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}