SEBI vide circular dated December 27, 20191 has laid down measures to strengthen the conduct of investment advisors in order to protect the interest of the investors. The circular lays down the following measures that the investment advisors shall comply with:
- Restriction on free trial;
- Proper risk profiling and consent of client on risk profiling;
- Receiving fees though banking channel only;
- Display of complaints status on website.
The measures referred above shall come into effect from January 01, 2020.
1. Bearing number SEBI/HO/IMD/DF1/CIR/P/2019/169.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.