SEBI Enhances Reporting Standards for Investment Advisers As of May 7, 2024, the Securities Exchange Board of India (SEBI) has instituted a mandate requiring all registered Investment Advisers (IAs) to submit detailed periodic reports. These reports, due semi-annually for periods ending on September 30 and March 31, are part of SEBI’s enhanced regulatory framework to ensure transparency and safeguard investor interests in the securities market.
Details Required in Periodic Reports
- General Information: Each report must include the IA’s shareholding pattern, membership number with the Investment Adviser Administration and Supervisory Body (IAASB), and SEBI registration number.
- Additional Data: Details such as bank accounts, social media handles, National Institute of Securities Markets (NISM) certification, and records of the last inspection must also be included.
- Complaint Records: Information about any complaints filed against the IA is also required to be part of the submission.
Background and Implementation
- Previous Practice: Before this directive, IAASB collected similar reports on an ad-hoc basis. However, to standardize data collection and enhance compliance checks, SEBI has now specified a consistent format for these reports.
- Standardized Format: Following recommendations from the Industry Standards Forum (ISF), SEBI has developed a standardized format to streamline the submission process.
- Submission Deadlines: For the initial half-yearly period ending on March 31, 2024, IAs were required to submit their reports within 15 days following the IAASB’s circular issuance. Moving forward, reports are to be submitted within seven working days after the end of each half-yearly period.
This initiative by SEBI is designed to enhance the operational transparency of Investment Advisers and to reinforce the regulatory framework to protect investors in the evolving securities market.
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