Reimagining Investment Advisory & Research Services

Editor’s Note: Late CA Jayant Thakur contributed to the Securities Law feature since 2006-07, since its inception, for nearly eighteen years on a month-on-month basis. After his passing the feature took a brief interval. We are delighted to restart this feature with new contributors CA Bhavesh Vora and CA Khushbu.

(Consultation Paper on Review of Regulatory Framework for Investment Advisers & Research Analysts)

BACKGROUND

SEBI (Investment Advisers) Regulations, 2013, and the SEBI (Research Analysts) Regulations, 2014, were established to regulate and streamline the activities of individuals and entities offering investment advisory and research analyst services. However, every regulation stands the test of time and must be revisited and redefined to commensurate with the evolving nature of business and adapt to the changing business trends.

In light of the growth in the securities market and a notable increase in investors, it is startling to see the current number of registered Investment Adviser (IAs) and Research Analysts (RAs) as compared to the large investor base. This discrepancy has resulted in a significantly low ratio of investment advisers per million individuals, leading to an increase in unregistered entities / individuals operatin