Banks , NBFCs Need RBI, SEBI Nod to Act as Investment Advisers

25 Feb, Mumbai

Banks and Non-Banking Financial Companies (NBFCs) planning to provide
investment advisory services have to obtain approvals from both the
RBI and the Sebi.

Securities and Exchange Board of India (Sebi) in a public
communication has said that a bank or an NBFC which proposes to
undertake investment advisory services has to first obtain permission
by Reserve Bank of India and then shall make an application for grant
of registration.

Through an subsidiary or separately identifiable department or
division (SIDD). It also stated that any entity which willing to
engage in the business of providing investment advice to clients or
other persons or group of persons is required to get registration from
the Sebi.

The Market regulator said, investment advisers which are banks, NBFCs
and body corporate providing distribution or execution services also
to their clients shall keep such activities segregated from investment
advisory activities Sebi said.

Meanwhile, Sebi today slapped fines totaling 2 crore rupees on 17
entities for allegedly failing to make shareholding disclosures within
the stipulated timeline.