SEBI OKs investment advisors, analysts to charge fees in advance up to 1 yr
This story was originally published at 20:14 IST on 24 March 2025
Register to read our real-time news.Informist, Monday, Mar. 24, 2025
Please click here to read all liners published on this story
--SEBI Pandey: Invest advisors, analysts may charge advance fee upto 1 yr
--CONTEXT: SEBI Chairman Pandey speaks at press meet after board meeting
--SEBI Pandey: Engaged with mkt participants to curb speculation
--SEBI Pandey: Will come down with heavy hand if cos make false disclosures
--SEBI Pandey: Mkt cycles are there; We see mkt functions with integrity
--SEBI Narayan: Conducting nation-wide survey on investor awareness
--CONTEXT: SEBI Whole Time Member Kamlesh Varshney speaks at press meet
--SEBI Varshney: Working with social media cos to remove misleading content
MUMBAI – The Securities and Exchange Board of India Monday allowed investment advisers and research analysts to charge fees, if agreed by the client, in advance up to a period of one year. Earlier, investment advisers and research analysts were allowed to charge advance fee for a maximum period of two quarters and one quarter, respectively. The board of the market regulator approved this change Monday, according to a press release.
The market regulator further clarified that the fee related provisions such as fee limit, modes of payment of fees, refund of fees, advance fee, breakage fees will only be applicable in case of individual and hindu undivided family clients not being accredited investors, as per the release. Thus, these conditions do not apply to non-individual clients, accredited investors, and in case of institutional investors seeking recommendation of proxy advisers. In such cases, fee related terms and conditions shall be governed through bilaterally negotiated contractual terms.
At a press conference after the board meeting, Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India, said markets go through cycles and that they cannot backstop the inteherent risk with equities. However, the regulator is working with market participants to curb speculation to make it fair for everyone, he said. The market regulator would come down with a heavy hand if companies make false disclosures, he said, adding that they will ensure the market functions with integrity, he said.
The Securities and Exchange Board of India is working with social media cos to remove misleading content, Kamlesh Chandra Varshney, whole-time member of the market regulator, said at the press conference. A nation-wide survey on investor awareness is also being conducted, Ananth Narayan, whole-time member of the Securities and Exchange Board of India said at the conference. End
Reported by Alina Geogy
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
