Sebi issues fresh consultation papers on investment advisers
The Securities and Exchange Board of India (Sebi) on Tuesday proposed new norms for investment advisers, under which they will haveto segregate their advisory and product distribution businesses. However, mutual fund distributors, while distributing the investment product can explainits features to the client.
The new proposals would help prevent the conflict of interest between´advising´and´selling´of investment products by the same entity or person.”There should be clear segregation between the two activities of the entity providing investment advice and distribution of the investment products/ execution of investment transactions,” Sebi said in a discussion paper.
The Sebi has sought public comments on the fresh proposals till January23 and the final regulation will be put in place after taking into consideration, views of all the stakeholders.
The Business Standard, New Delhi, 03rd January 2018