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TMI BlogSecurities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be omitted. (2) clause (ga) shall be omitted. (3) in clause (l), (a) the words and symbol or investment products, appearing after the words otherwise dealing in securities and after the words portfolio containing securities shall be omitted. (b) after the proviso, the following proviso shall be inserted, namely: - Provided further that trading calls shall not be considered as investment advice for purpose of these regulations. (4) in clause (m), after the words group of persons and includes and before the words any person who holds out , the words and symbol a part-time investment adviser or shall be inserted; (5) after clause (pa) and before clause (q), the following clause shall be inserted, namely: - (pb) other business activity or employment means such business activity or employment which is not related to securities and: a. it does not involve handling or managing of money or funds of client or person; or b. it is not related to providing advice or recommendation to any client or person in respect of any products or assets for investment purposes; (6) after clause (q) and before clause (r), the following clause shall be inserted, namely: - (qa) part-time investment adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e words actuarial science and before the words from a university , the words or other financial services as may be specified , shall be inserted. (b) clause (b) shall be omitted. (c) clause (c) shall be substituted with the following, namely: - (c) Persons associated with investment advice shall, at all times, have a minimum qualification of graduate degree in any discipline from a university or institution recognized by the Central Government or any State Government or a recognized foreign university or institution: (d) in second proviso, the words and symbols and (b) , shall be omitted. (2) sub-regulation (2) shall be substituted with the following, namely: - (2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations, persons associated with investment advice, and in case of investment adviser being a partnership firm, the partners thereof who are engaged in providing investment advice, shall have at all times relevant NISM certification as specified by the Board from time to time: Provided that a fresh relevant NISM certification as specified by the Board from time to time shall be obtained before expiry o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as nonindividual investment adviser, whichever is earlier, the investment adviser shall surrender his registration as individual investment adviser. (3) after clause (e), the following clause shall be inserted, namely: - (f) the number of clients of a part-time investment adviser shall not exceed seventy-five in total at any point of time. VII. in regulation 15 , (1) after sub-regulation (13), the following sub-regulation shall be inserted, namely: - (14) An investment adviser who uses Artificial Intelligence tools, irrespective of the scale and scenario of adoption of such tools, for servicing its clients shall be solely responsible for the security, confidentiality, integrity of the client data, use of any other information or data to arrive at investment advice, investment advice based on output of Artificial Intelligence tools and compliance with any law for the time being in force. VIII. in regulation 18 , after sub-regulation (7), the following sub-regulations shall be inserted, namely: - (8) An investment adviser who provides advisory services in respect of products or services which are outside the purview of the Board, shall disclose to the client that such products or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iance, the principal officer shall submit an undertaking to the Board or the body or body corporate recognized under regulation 14 of these regulations to the effect that the principal officer shall be responsible for monitoring the compliance in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by the Board. XII. in First Schedule , (1) in Form A, (a) in item 1, after clause (d) and before clause (e), the following clauses shall be inserted, namely: - (da) Indicate whether the application for the grant of certificate of registration is for part-time investment adviser; (db) Whether the applicant is engaged in any other business activity or employment? If so, details of such other business activity or employment. (b) in item 2, i. in sub-item (I), A. in clause 7 the words and symbols and certification of net tangible assets certified by a chartered accountant (not more than six months old at the time of filing of application). Please note that membership number of the Chartered accountant must be included in the certificate, shall be omitted. B. after clause 7, the following clause shall be inserted, namely: - 8. Where the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For and on behalf of Securities and Exchange Board of India PRAMOD RAO, Executive Director [ADVT.-III/4/Exty./762/2024-25] Footnotes: 1. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were published in the Gazette of India on January 21, 2013 vide No. SEBI/LAD-NRO/GN/2012-13/31/1778. 2. The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 were subsequently amended on, - a. 23rd May, 2014 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/03/1089; b. 8th December, 2016 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide No. SEBI/LAD-NRO/GN/2016-17/023; c. 17th April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10; d. 3rd July, 2020 by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/22; e. 11th January, 2021 by the Securities and Exchange Board of India (Investment Advisers) (Amendment) Regulati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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