Regulatory confusion

Curbs on investment advisers may not address mis-selling

The landscape will change for investment advisers due to decisions taken by the Securities and Exchange Board of India (Sebi) at its latest board meeting. The regulator has decreed that the same entity should not provide both advisory services and products such as mutual funds to a client (defined here as a family with dependent children, parents, etc). Sebi has also put a cap of Rs 75,000 per account on the fees that may be charged from a single client for advisory services, with a maximum charge of 2.25 per cent of assets under management for smaller portfolios. However, separate