Sebi likely to revisit proposals on investment advisor regulations

Inflows through banks to get impacted

The Securities and Exchange Board of India (Sebi) is likely to do a rethink on most of its recent proposals to amend investment advisor regulations, after flak from the distributor community, including banks.

The regulator had come up with a consultation paper in January, proposing a blanket ban on individuals and their immediate relatives acting as distributors from offering any sort of advice. Similarly, individuals registered as investment advisors would not be allowed to provide any distribution services in financial products.

Banks, non-banking financial companies, body corporates, limited liability partnerships and firms registered as investment advisors would not be able to distribute