"... SCB can advise on regulated offshore securities and investment products, which are in the nature of marketable securities issued by a body corporate or a corporation under their Investment Advisory license under Sebi's Investment Advisers Regulations," the regulator said today.
The Securities and Exchange Board of India (Sebi) has conveyed its views in response to an 'informal guidance' sought by Standard Chartered Bank.
Stanchart had said it was seeking to provide investment advisory services on offshore investment products and therefore it was requesting for an interpretive letter on whether it can advise on offshore investment products under their Investment Advisory license.
"They frequently need advice on investing some of these balances in offshore securities. The primary rationale for the same is to diversify portfolios.
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"As a client solution therefore, we in our capacity of being Investment Advisors, would like to offer advisory services on regulated offshore products like offshore stocks, bonds and mutual funds.
"This service will be a purely advisory service, consistent with the IA Regulations. The client will execute trades as per the banking arrangement he has offshore.
Besides its presence as a major foreign bank, Stanchart is also very active in the Indian capital markets, including as an investment advisor. Its Indian Depository Receipts are also listed in the country.