The Hindu Business Line : SEBI norms to cover investment advisors soon

New Delhi, Feb. 18 Investment advisors are once again under the lens of the Securities and Exchange Board of India (SEBI), with the capital market regulator on Saturday deciding to come up with regulations for such advisors.

Asked about the kind of persons who are likely to be covered under the proposed regulations, the SEBI Chairman, Mr M. Damodaran said, "Those that render investment advice that was relatable to SEBI's area of activities would certainly be covered."

He also made it clear that the proposed regulations would not be focused on any particular single medium of communication.

"What is more important is the message and not the medium. We are looking at the quality of message that goes out. Is it advice? Is it advice that is driven only by expertise? Or is it advice that is driven by agenda?"

While stating that the proposed regulations on investment advisors would be framed on a priority basis, Mr Damodaran at the same time said that SEBI would invite comments from those who have views on this matter.

"Urgency without sacrificing the consultative process is our present objective," he said.

Mr Damodaran said that these regulations are to be framed having regard to the need for expertise as well as responsibility in the advisory functions.

"It is our belief that qualified, competent and responsible investment advisors will be a major contributor to informed decision making by investors and will in due course positively impact the market — both in regard to existing as also new investors that are likely to come into market," he said.

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SEBI norms to cover investment advisors soon