The capital markets regulator Securities Exchange Board of India (Sebi) has released a draft circular which carries the reporting format for investment advisors. The circular states that the investment advisors (IAs) are required to furnish to Sebi, information and reports as may be specified from time to time.
The Sebi circular stipulates that the investment advisors must share details of their social media handles such as Facebook, X (formerly Twitter), Linkedin and others. The circular also mentions that the details of all such platforms must be shared.
At present, Sebi has recognised Investment Advisors Administration and Supervisory Body (IAASB) for the purpose of administration and supervision of investment advisors.
The IAASB has been seeking these reports on an ad-hoc basis. So, it was decided to specify a standardised format for periodic reporting for investment advisors.
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Sebi has now prepared a standardised periodic format for submission of information by investment advisors pertaining to their activities on a periodic basis after the recommendations from Industry Standards Forum (ISF).
The format
The regulator has released the periodic reporting format in Annexure I (shown in picture below) which includes details of shareholding pattern, membership number of IAASB, Sebi registration number of investment advisor, and details of complaints filed against the IA.
Besides social media details, they must share details with respect to their bank accounts, total number of persons associated with investment advice, NISM certification details, details of last inspection, among others.
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Periodicity
Investment advisors will submit periodic reports for half yearly periods ending on September 30 and March 31 of every financial year.
For the half-yearly period ending on March 31, 2024, IAs will submit the periodic report within 15 days from the date of issuance of circular by IAASB.
For the subsequent half yearly periods, IAs will submit periodic reports within seven working days from the end of the half-yearly period for which details are to be furnished.
Sebi has released the circular in a bid to protect the interests of investors in the securities market and to promote the development of, and to regulate the securities market.
The circular released on May 7 will become applicable with immediate effect.
This circular is available on Sebi website under the categories legal>circulars, ‘info for’ > ‘investment advisors’.
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Published: 08 May 2024, 05:07 PM IST