SEBI issues Operating Guidelines for Investment Advisors in International Financial Services Centre

The Securities and Exchange Board of India (‘SEBI’) has, by a Circular dated January 9, 2020, issued the Operating Guidelines for Investment Advisers (‘IA’) in International Financial Services Centre (‘IFSC’). These provide that any company or LLP, having a net worth of US$ 1.5 million, formed by any recognized entity(ies) complying with specified ‘fit and proper’ norms, can apply for a certificate of registration as an IA in an IFSC. If the IA is set up as a subsidiary, the net worth of the parent company can be considered for the purpose of the application. Further, such IAs will provide investment advisory services only to the persons specified in the SEBI (IFSC) Guidelines, 2015, including persons resident outside India and non-resident Indians. It also prescribes compliance requirements for such IAs, such as minimum qualification, experience and certification requirements and an annual audit.

Published In:Inter Alia - Quarterly Edition - March 2020 [ English Chinese japanese ]
Date: March 30, 2020