Extension of Compliance Timeline for Qualification and Experience Requirements under SEBI (Investment Advisers) Regulations, 2013
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Regulation 7 of SEBI (Investment Advisers) Regulations, 2013
Under the SEBI (Investment Advisers) Regulations, 2013, amendment vide SEBI (Investment Advisers) (Amendment) Regulations, 2020, Regulation 7 outlines the qualification and experience requirements for investment advisers. It stipulates that individual investment advisers, principal officers of non-individual investment advisers, and individuals associated with investment advice must meet the enhanced qualification and experience requirements specified in Regulation 7(1) within a three-year period, ending on September 30, 2023.
Extension of Compliance Deadline
Considering the input received from stakeholders and the evolving landscape of investment advice, an amendment to the first proviso of Regulation 7(1) has been made through the SEBI (Investment Advisers) (Amendment) Regulations, 2023, effective from September 30, 2023. As per the amendment, the compliance deadline for the enhanced qualification and experience requirements under Regulation 7(1) has been extended to September 30, 2025.
Directives to BSE Administration & Supervision Limited
BSE Administration & Supervision Limited has been issued directives to bring the provisions of this circular to the attention of its members and disseminate the information on its official website.
Objective of the Circular
This circular has been issued under the authority of the Securities and Exchange Board of India (SEBI) Act, 1992, Section 11(1), and regulation 7(1) of SEBI (Investment Advisers) Regulations, 2013. Its purpose is to protect the interests of investors in securities and promote the development and regulation of the securities market.
Availability and Access
This circular can be accessed on the SEBI website at www.sebi.gov.in. It is available in the “Legal à Circulars” and “Info for à Investment Advisers” sections.
Importance of the Revised Compliance Timeline for Investment Advisers
The extension of the compliance timeline for the qualification and experience requirements under the SEBI (Investment Advisers) Regulations, 2013 holds several benefits for investment advisers and the securities market as a whole.
1. Facilitating a Smooth Transition
The amended circular acknowledges the evolving nature of the investment advice domain and allows investment advisers ample time to meet the enhanced qualification and experience requirements. This extension ensures a smoother transition by providing investment advisers with a realistic timeframe to enhance their qualifications and gain the necessary expertise.
2. Enhancing Investor Protection
By extending the compliance deadline, the revised circular reinforces SEBI’s commitment to protect the interests of investors in securities. The enhanced qualification and experience requirements aim to ensure that investment advisers possess the necessary skills and knowledge to provide sound advice to investors. This, in turn, promotes investor trust and helps safeguard their investments.
3. Promoting Market Development
SEBI’s regulatory role extends beyond protecting investors to promoting the development of the securities market. By granting investment advisers an extended period to comply with the qualification and experience requirements, the circular encourages greater participation from industry professionals. This, in turn, promotes a healthy and competitive market environment, benefiting investors and contributing to the growth and development of the securities market.
4. Transparency and Compliance
The revised compliance timeline enhances transparency by clearly defining the deadline for investment advisers to meet the qualification and experience requirements. The circular ensures that all investment advisers are aware of the extended timeline and enables them to plan their professional development accordingly. This promotes better adherence to regulatory requirements and fosters a culture of compliance within the investment advisory industry.
Conclusion
In conclusion, the extension of the compliance timeline for qualification and experience requirements under the SEBI (Investment Advisers) Regulations, 2013 is a positive development for investment advisers and the securities market as a whole. The extended deadline allows investment advisers sufficient time to upgrade their qualifications and gain the necessary experience, promoting investor protection, market development, and regulatory compliance. By providing a transparent and realistic timeframe, SEBI contributes to the growth and stability of the investment advisory industry.
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