Come October 1, your financial advisor will not be able to provide you investment advice. Tightening the regulations for registered investment advisors (RIAs), the Securities Exchange Board of India (Sebi) on July 3 has notified changes to the Sebi (Investment Advisers) Regulations, 2013, to bring in segregation of investment and distribution services.
It specifies that corporate (non-individual) advisors will be allowed to offer both advisory and distribution services by floating two separate legal entities with clear demarcation. No client will be offered both services.
An individual RIA can either be an advisor or distributor, never both. However, the RIA can offer transaction