Fintech firms fret over uncertainty in Sebi's investment advisory norms

The uncertainty may hinder investments from PE and venture capital funds

The uncertainty in investment advisory norms for nearly a year has prompted another financial services body to write to market regulator Securities and Exchange Board of India (Sebi), asking it to rethink its proposed amendments to the Sebi (Investment Advisers) Regulations, 2013. 

India FinTech Forum, a non-profit initiative comprising about 90 fintech firms, has told Sebi that it is impractical to separate the roles of advisory and distribution functions, considering the low penetration of mutual funds in India.

Sebi’s consultation paper on amendments to the 2013 rules states that mutual fund distributors (MFDs) should offer suitable schemes to investors considering