SEBI issues modalities related to Investment Adviser applications – details here!

Investment Advisors can now approach to BSE Administration and Supervision Ltd. (BASL) for registration and post registration activities. The information has been shared by the Securities and Exchange Board of India (SEBI) on its intermediary portal. On Monday, markets regulator Securities and Exchange Board of India (Sebi) issued modalities for investment adviser applications, asking all the new and existing applicants to approach BASL for registration related activities.

The portal also contains official email of BASL and details of the contact officials.

On 18 June, 2021, the market regulator granted recognition to BASL, to act as an Investment Adviser Administration and Supervisory Body (IAASB) for a period of three years from 1 June, 2021.

"As  per  Regulation  14  of  the  SEBI  (Investment  Advisers)  Regulations  2013  (“IA Regulations”),  SEBI may inter-alia recognize  any  body  or  body  corporate  for  the purpose  of  regulating  Investment  Advisers  (“IA”)and  delegate  administration  and supervision   of   the   IAs   on   such   terms   and   conditions   as   may   be   specified. Accordingly,  an entity granted  recognition  under the  aforesaid Regulation shall  be designated as  “Investment  Adviser  Administration  and  Supervisory  Body”  (“IAASB”)and shall be entrusted with the administration and supervision of IAs," the circular said.     

“In  this  regard, BSE  Administration  &  Supervision  Limited  (BASL),  a  wholly  owned subsidiary  of  BSE  Limited,  has  been  granted  recognition as IAASB for a  period  of three  years  from  June  01,  2021,” it said.

What BASL (IAASB)  is required to do?

1) Supervision of IAs including both on-site and offsite

2) Grievance redressal of clients and IAs

3) Administrative   action   including   issuing   warning   and   referring   to   SEBI   for enforcement action

4) Monitoring activities of IAs by obtaining periodical reports

5) Submission of periodical reports to SEBI

6) Maintenance of database of IAs

The administration and supervision of Investment Advisers (IAs) has been delegated to BASL under provisions of Regulation 14(2) of SEBI IA Regulations.

IA applicants as well as existing IAs can refer to BASL circular dated 18 July, 2022 to know the Revised Process for seeking Membership from BASL and Registration from SEBI.