Description

Comprehensive regulations governing investment advisers, including registration requirements, definitions, and control provisions as last amended in August 2025.

Summary

The Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, as last amended on August 7, 2025, establish the comprehensive regulatory framework for investment advisers operating in India. These regulations define key terms, registration requirements, and operational guidelines for investment advisory services.

Key Points

  • Regulations came into force on the ninetieth day from publication in the Official Gazette (originally January 21, 2013)
  • Defines “assets under advice” as aggregate net asset value of securities for which investment advice is rendered
  • Introduces provisions for accredited investors and accreditation agencies
  • Establishes clear definitions for change in control scenarios
  • Updates references to Companies Act, 2013 from earlier Companies Act, 1956

Regulatory Changes

  • Recent amendments include removal of “investment products” from assets under advice definition (effective December 16, 2024)
  • Addition of accredited investor and accreditation agency definitions aligned with Alternative Investment Funds Regulations
  • Updated change in control provisions with reference to recognized stock exchanges
  • Modernized corporate law references to Companies Act, 2013

Compliance Requirements

  • Investment advisers must obtain certificate of registration under these regulations
  • Must comply with assets under advice reporting requirements
  • Change in control transactions must follow prescribed regulatory framework
  • Adherence to updated definitions and operational parameters as amended

Important Dates

  • Original effective date: 90 days from January 21, 2013
  • Latest amendment effective: August 7, 2025
  • Previous amendment effective: December 16, 2024 (assets under advice definition change)

Impact Assessment

  • Provides legal certainty for investment advisory industry operations
  • Recent amendments streamline regulatory compliance and align with broader market regulations
  • Affects all registered and prospective investment advisers in Indian securities markets
  • Strengthens regulatory oversight while maintaining operational flexibility for advisers

Impact Justification

Fundamental regulatory framework for investment advisers with recent amendments affecting industry compliance requirements