Regulation 15 - General responsibility - Securities and Exchange Board of India (Investment Advisers) Regulations 2013

CHAPTER III GENERAL OBLIGATIONS AND RESPONSIBILITIES General responsibility. 15. (1) An investment adviser shall act in a fiduciary capacity towards its clients and shall disclose all conflicts of interests as and when they arise. (2) An investment adviser shall not receive any consideration by way of remuneration or compensation or in any other form from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided. (3) An investment adviser shall maintain an arms-length relationship between its activities as an investment adviser and other activities. (4) An investment adviser which is also engaged in activities other than investment advisory services shall ensure that its investment advisory services are clearly segregated from all its other activities, in the manner as prescribed hereunder. (5) An investment adviser shall ensure that in case of any conflict of interest of the investment advisory activities with other activities, such conflict of interest shall be disclosed to the client. (6) An investment adviser shall not divulge any confidential information about its client, which has come to its knowledge, without taking prior permission of its clients, except where such disclosures are required to be made in compliance with any law for the time being in force. (7) An investment advisor shall not enter into transactions on its own account which is contrary to its advice given to clients for a period of fifteen days from the day of such advice. Provided that during the period of such fifteen days, if the investment adviser is of the opinion that the situation has changed, then it may enter into such a transaction on its own account after giving such revised assessment to the client at least 24 hours in advance of entering into such transaction. (8) An investment advisor shall follow Know Your Client procedure as specified by the Board from time to time. (9) An investment adviser shall abide by Code of Conduct as specified in Third Schedule. (10) An investment adviser shall not act on its own account, knowingly to sell securities or investment products to or purchase securities or investment product from a client. (11) In case of change in control of the investment adviser, prior approval from the Board shall be taken. (12) Investment advisers shall furnish to the Board information and reports as may be specified by the Board from time to time. 1 [ (13) It shall be the responsibility of the investment adviser to ensure compliance with the certification and qualification requirements as specified under Regulation 7 at all times. ] ************* NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2020/22 dated 03-07-2020 before it was read as, (13) It shall be the responsibility of the Investment Adviser to ensure that its representatives and partners, as applicable, comply with the certification and qualification requirements under Regulation 7 at all times.