Description

BSE introduces a standardised penalty structure for Investment Advisers effective May 1, 2026, covering non-compliances under SEBI (Investment Advisers) Regulations, 2013.

Summary

BSE has issued Notice No. 20260429-17 introducing a standardised penalty structure for Registered Investment Advisers (IAs). The structure is designed to address non-compliances under the SEBI (Investment Advisers) Regulations, 2013, and related Exchange Notices. Detailed penalty schedules are provided in Annexure A attached to the notice.

Key Points

  • BSE is standardising how non-compliances by Investment Advisers are handled through a defined penalty framework.
  • Penalty details for identified non-compliances are outlined in Annexure A (Annexure_A-Penalty_Structure_for_IA).
  • The structure applies to all non-compliances observed on or after May 1, 2026.
  • Investment Advisers are urged to ensure compliance proactively to avoid penalties.
  • The notice is issued by BSE’s Enforcement Department (DOSS).

Regulatory Changes

A formalised and standardised penalty structure has been introduced for Investment Advisers, replacing or supplementing any prior ad-hoc enforcement approach. The framework is aligned with SEBI (Investment Advisers) Regulations, 2013, and Exchange Notices governing IA conduct.

Compliance Requirements

  • All Registered Investment Advisers must review the penalty schedule in Annexure A.
  • IAs must ensure full compliance with SEBI (Investment Advisers) Regulations, 2013, and all applicable Exchange Notices to avoid penalties.
  • For clarifications, IAs may contact BSE Enforcement at 022-22728466, 022-22725854, 022-69158540, 022-45720640, 022-45720440 or via email at membership.ops@bseindia.com / enforcement@bseindia.com.

Important Dates

  • Notice Date: April 29, 2026
  • Effective Date: May 1, 2026 — penalty structure applies to all non-compliances observed on or after this date.

Impact Assessment

This circular has high operational impact for all BSE-registered Investment Advisers. The introduction of a standardised penalty framework increases regulatory certainty but also heightens enforcement risk for non-compliant IAs. Firms and individuals operating as Investment Advisers on BSE must audit their compliance practices against the Annexure A schedule before May 1, 2026, to avoid financial penalties. The move signals increased scrutiny of the IA segment by BSE’s Enforcement Department.

Impact Justification

Introduces a formal, standardised penalty framework for all registered Investment Advisers effective May 1, 2026; non-compliance will result in financial penalties, making this operationally significant for all IAs on BSE.