Why Your Investment Advisor MUST Be SEBI Registered
Investing in stocks? Check if your investment advisor is SEBI Registered. Here’s a quick look about why it matters
Securities And Exchange Board Of India – SEBI is “THE” regulatory body for the investment market in India. The purpose of this board is to maintain stable and efficient markets by creating and enforcing regulations in the marketplace.
The good part about working with a SEBI registered investment advisor is they have to follow certain rules and regulation that put clients or customers first.
SEBI Advises the Following tio Investment Advisors which automatically ensures your protection.
Honesty and Fairness
An investment adviser shall act honestly, fairly and in the best interests of its clients
and in the integrity of the market.
An investment adviser shall act with due skill, care and diligence in the best interests
of its clients and shall ensure that its advice is offered after thorough analysis and
taking into account available alternatives.
An investment adviser shall have and employ effectively appropriate resources and
procedures which are needed for the efficient performance of its business activities.
Information about clients
An investment adviser shall seek from its clients, information about their financial
situation, investment experience and investment objectives relevant to the services to
be provided and maintain confidentiality of such information.
Information to its clients
An investment adviser shall make adequate disclosures of relevant material
information while dealing with its clients.
Fair and reasonable charges
An investment adviser advising a client may charge fees, subject to any ceiling as
may be specified by the Board, if any. The investment adviser shall ensure that fees
charged to the clients is fair and reasonable.
Conflicts of interest
An investment adviser shall try to avoid conflicts of interest as far as possible and
when they cannot be avoided, it shall ensure that appropriate disclosures are made to
the clients and that the clients are fairly treated.
An investment adviser including its representative(s) shall comply with all regulatory
requirements applicable to the conduct of its business activities so as to promote the
best interests of clients and the integrity of the market.
Responsibility of senior management
The senior management of a body corporate which is registered as investment adviser
shall bear primary responsibility for ensuring the maintenance of appropriate
standards of conduct and adherence to proper procedures by the body corporate
To sum it up Equity Investment Advisors are expected to act in clients interest. Ensure your Equity investment advisor is SEBI Registered