Master Circular – Investment Adviser

1.   Process for Enlistment

SEBI vide circular no. SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2024/101 dated July 12, 2024 has granted recognition to BSE Limited as Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body (IAASB) under Regulation 14 of SEBI (Research Analysts) Regulations, 2014 and SEBI (Investment Advisers) Regulations, 2013 for administration and supervision of Research Analysts (‘RAs’) and Investment Advisers (‘IAs’) for a period of five years starting from July 25, 2024. In this regard, Exchange has issued notice no. 20240715-41 dated July 15, 2024.

The existing Investment Advisers (IAs) and entities getting registered as IA are required to maintain the SEBI registration certificate and comply with the Regulations, Byelaws, directions, guidelines and circulars issued by SEBI and the Exchange from time to time.

All the existing SEBI registered IAs holding BASL membership will be enlisted on the Exchange w.e.f. July 25, 2024. Applicants desirous of obtaining registration as IA are required to submit their application to the Exchange w.e.f. July 25, 2024, through the online interface on the URL link  https://membershipraia.bseindia.com/

The User Manual for enlistment, Standard Operating Process (SOP) including fee structure and checklist of documents for enlistment under various categories are available in the “Investment Adviser / Research Analyst” section of the Exchange website.    

2.   Guidelines to curb spam SMS and misuse of headers and Content Templates by unauthorized Telemarketers (UTMS)

In order to ensure that all promotional messages are sent only through Registered Telemarketers (RTMs) and also to stop misuse of Headers and Message Templates which leads to increase in number of fraud/spam, the Telecom Regulatory Authority of India (TRAI) has issued two separate directions on February 16, 2023 to all Access Service Providers (ASPs) under the Telecom Commercial Communication Customer Preference Regulations, 2018 (TCCCPR-2018). 

Further, all intermediaries who send bulk SMS hereinafter referred to as Principal Entities (PEs), may be sensitized and the following directions from TRAI may be noted for implementation: 

i. It is seen that many PEs have registered large number of Headers and Content Templates. Unused Headers and Content Templates can be misused by fraudulent entities. Hence, PEs shall review all the Headers and Content Templates registered by them and surrender and close unused Headers and Templates immediately.

ii. Most misuse of Content Templates is being done due to leaking of template IDs. To avoid the misuse, PEs shall review and re-register all Content Templates immediately.

iii. Re-verification of Headers and Content Templates shall be done by PEs on a quarterly basis.

iv. During registration, the PEs may classify the Headers as permanent and temporary as per their own requirement. Time duration of temporary Headers will be given by PEs during registration process after which they will be deactivated.

v. PEs shall limit the number of variables portion in the Content Template of message to two variables only, provided that, for the reasons to be recorded, a third variable may be allowed in case of exigency. Variables shall be non-contiguous and not separated with space, comma and/or any other special character.

vi. PEs shall engage only Registered Telemarketers (RTMs) and predeclare the complete chain of Registered Telemarketers engaged by them to their respective Access Providers/Telecom Service Providers (TSPs). It is advisable to keep the number of RTMs in the delivery chain to a minimum. Access Providers shall reject all messages where the chain of RTMs is not defined or does not match.

vii. PEs or their authorized RTMs in the chain shall not use any telephone numbers for sending any kind of message and do not engage any Unregistered Telemarketers (UTM) for transmission of their message. Any blacklisted RTM should not be given any contract.

viii. PEs should ensure appropriate provisions in agreement with RTMs so that Headers and Templates shared by them with all RTMs are not misused.

ix. PEs may obtain the Delivery Report (DLR) from Access Providers/TSPs, in form of total count of messages delivered, through a system generated report.

3.   Usage of brand name/trade name by Investment Advisers (IA)

In order to ensure the transparency of usage of brand name/Logo IAs shall ensure that: –

1. The information such as name of the IA as registered with SEBI, its logo, its registration number and its complete address with telephone numbers shall be prominently displayed on portal/web site, if any, notice board, display boards, advertisements, publications, know your client forms and client agreements.
2. The information such as name of the IA/RA as registered with SEBI, its logo, its registration number, its complete address with telephone numbers, the name of the compliance officer, his telephone number and e-mail address, the name, telephone number and e-mail address of the grievance officer or the grievance redressal cell shall be displayed prominently in statements or reports or any other form of correspondence with the client.
3. Disclaimer that “Registration granted by SEBI, enlistment of IA with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors” shall be mentioned on portal/web site, if any, notice board, display boards, advertisements, publications, know your client forms, client agreements, statements or reports or any other form of correspondence with the client.
4. SEBI logo shall not be used by IA.

4.   Advertisement approval process and Revised Code of Advertisement

Enlisted IAs must submit draft advertisement to be published in print/electronic media through the interface provided on portal for approval. The advertisement should be in conformity with the revised code of advertisement and other notices issued by SEBI/Exchange from time to time. Exchange verifies the draft advertisement and grants approval on the same portal through which it is submitted.

 Code of Advertisement for Investment Advisers  

1. Advertisement shall include all forms of communication issued by or on behalf of or in relation to Investment Advisers (IA) that may influence investment decisions of any investor/prospective investors. It also includes internal communication to registered clients that may influence investment decisions.
2. Forms of communications to which the present Advertisement Code shall be applicable, shall include pamphlets, circulars, brochures, notices, research reports or any other literature, document, information or material published, or designed for use in any publication or displays (such as newspaper, magazine, sign boards/hoardings at any location), in any electronic, wired or wireless communication (such as electronic mail, text messaging, messaging platforms, social media platforms, radio, telephone, or in any other form over the internet) or over any other audio-visual form of communication (such as television, tape recording, video tape recordings, motion pictures, etc.) or in any other manner whatsoever.
3. Broad guidelines:
   • Prior approval for all Advertisement should be obtained by IA enlisted with Exchange (herein referred as enlisted IAs) from Exchange before issuance of Advertisement.
   • Any communication aimed at solicitation of clients or making claim of service or performance of IA shall constitute an advertisement irrespective of whether such communication is made to existing or prospective clients.
   • Prior approval of Exchange shall be required to be obtained in case the website or other digital platform of IA contains any public outreach or any publicity material that may influence the investment decision of investors/ prospective investors. For websites with basic content, prior approval may not be required. Any communication aimed at solicitation of clients or making any claim of a service or performance of IA shall constitute advertisement irrespective of whether such communication is made to existing/ prospective clients.
   • Any Advertisement issued by Authorized Persons/Business Partner/Channel Partner of the enlisted IAs or Influencer/Blogger being paid (directly or indirectly) in any form of consideration by enlisted IAs, shall require prior Exchange approval. Any Advertisement issued by Associated Person on their own shall not be entertained by Exchange.
   • Enlisted IAs are hereby advised to undertake adequate due diligence to ensure that content used in the Advertisement strictly adheres to the Code of Advertisement prescribed by Securities and Exchange Board of India (SEBI)/ Exchange from time to time.
   • In the event of suspension of any enlisted IA by Exchange /SEBI, the enlisted IA so suspended shall not issue any Advertisement either singly or jointly with any other enlisted IA during the period of suspension.
   • Exchange reserves the right to direct the enlisted IA to refrain from issuing any Advertisement for such period as it may deem fit.
   • Enlisted IAs should have an internal policy/framework to ensure compliance by itself and Associated Persons/Business Partner/Channel Partner of the enlisted IAs or Influencer/Blogger being paid by enlisted IAs, with the circulars/guidelines issued by Exchange /SEBI for Advertisements.
   • Any promotion for the mobile application of the enlisted IA (with or without account opening or Products/Services information) will require prior Exchange approval.
   • In case of any third-party issuing Advertisement on any platform without the consent of the enlisted IA, then the enlisted IA shall disown the said Advertisement. Further, in such cases, the enlisted IA is required to take appropriate legal action against such entity and inform Exchange regarding such action and outcome thereof.
   • Information contained in the Advertisement should be accurate, complete and unambiguous.
4. Advertisement shall contain :
   • Name of the IA as registered with SEBI, complete registered office address, SEBI Registration number / enlistment number allotted by Exchange, logo / brand name / trade name of the enlisted IA, if any, and CIN of the enlisted IA, if applicable
   • Information which is accurate, true and complete in unambiguous and concise language.
   • Standard warning in legible fonts (minimum font size 10) which states ‘Investment in securities market are subject to market risks. Read all the related documents carefully before investing.’ No addition or deletion of words shall be made to/from the standard warning.
   • In audio-visual media based Advertisements, the standard warning in visual media based Advertisement and accompanying voice over reiteration shall be audible in a clear and understandable manner. For example, in standard warning both the visual and the voice over reiteration containing 20 words running for at least 10 seconds may be considered as clear and understandable.
   • Whenever the Advertisement is being issued in a language other than English, it will be ensured that the standard warning is accurately translated in the language of the advertisement.
   • In case the mode of Advertisement is in the form of SMS/Message/Pop-up, social media, etc. and the details such as full name, logo/brand name/tradename/full registered office address, SEBI registration numbers, enlistment number with Exchange and standard disclaimer are not mentioned, then official website hyperlink should be provided in such SMS/Message/Pop-up, etc., and the website must contain all such details.

The information/disclosures that the advertisement shall contain, include the following : 

• If there is a mention of content pertaining to any other business activity such as Mutual Funds, Initial Public Offer (IPO), Insurance, Commodities, Bonds, Loans, etc., in the Advertisement, then respective SEBI registration number(s), where applicable, must be mentioned.
• If the enlisted IA is only a distributor/s for any of the products mentioned in the Advertisement, disclaimer that they are only distributor/s of such products must be specifically mentioned in the disclaimer.
• In case any specific security/securities are displayed in the Advertisement as examples, disclaimer that “The securities quoted are for illustration only and are not recommendatory” should be mentioned. Further, such disclaimer must be on the same slide of the written creative / frame of the video where such specific security / securities are displayed and not at the end of the creative / Advertisement. The logos of the securities quoted shall not be used in the creative/Advertisement.
• Statistical information, charts, graphs, etc., when used, should be supported by their source, i.e., certification by a practicing professional or other authentic verifiable source, if any.
• Where advertising claims are expressly stated to be based on, or supported by independent research or assessment, source of such data and the period it relates to, must be indicated in the Advertisement. Further, authentic source of such information must be provided in the Advertisement.
• Name and Logo of Exchange shall not be used by the enlisted IAs in their creative / Advertisement.
• Advertisement and communications/correspondences with clients shall include the disclaimer that “Registration granted by SEBI, enlistment as IA with Exchange and certification from National Institute of Securities Markets (NISM) in no way guarantee performance of the intermediary or provide any assurance of returns to investors”.

5. Advertisement/Material shall not contain:

• Anything which is prohibited for publication under the law.
• Statements which are false, misleading, biased or deceptive, exaggerated, ambiguous, based on assumptions or projections.
• Any misleading or deceptive testimonials.
• Statements which, directly or by implication or by omission, may mislead the investor.
• Any statement likely to be misunderstood or likely to disguise the significance of the same or any other statement contained in the Advertisement.
• Any statement designed to exploit the lack of experience or knowledge of the investors.
• Any statement that is exaggerated or is inconsistent with or unrelated to the nature and risk and return profile of the product.
• Extensive use of technical or legal terminology or complex language and the inclusion of excessive details which may distract or confuse or induce the investors.
• Reference to any report, analysis, or service as free, unless it actually is available for free and without any condition or obligation.
• Any promise or guarantee of assured or risk free return to the investors.
• The advertisement shall not imply any assured returns or minimum returns or target return or percentage accuracy or service provision till achievement of target returns or any other nomenclature that gives the impression to the client that the investment advice/recommendation of research report is risk-free and/or not susceptible to market risks and/or that it can generate returns with any level of assurance.
• Any statement which directly or indirectly discredits other advertisements or intermediaries or makes unfair comparisons or ascribes any qualitative advantage over other intermediaries, directly or indirectly.
• Reference to past performance of the IA.
• Superlative terms, such as “BEST”, “No. 1”, “Top Adviser”, “Leading”, “One of the best amongst market leaders”, etc., so as to provide any endorsement of quality or standing of the IA. However, factual details of awards received by the IA from independent organisations may be included.
• Any statement which directly or indirectly discredits other Advertisements or enlisted IA or make unfair comparisons. The Advertisement issued should not imitate any Advertisement by other enlisted IAs.
• Any recommendation/promotion of a specific investment/scrip/contract, in any manner including by way of reference to past performance or research material, shall not be permitted.
• Celebrities shall not form part of the Advertisements including but not limited to, in the form of cartoons/memes, etc. The word ‘celebrity’ means and includes any person:

5. who feature in the top 50 rankings in any celebrity index published by a national publication of repute which is publicly available. The celebrity index should be latest available or at the most one-year old.
6. who has played lead role or one of the lead roles in any mainstream / prominent/ popular movies/TV serials/TV shows/web-series on any of the OTT platforms.
7. who is an Influencer with more than 10 Lacs followers/subscribers (per social media handle) on any social media platform that includes but not limited to YouTube, Instagram, Facebook, Twitter, etc.
8. who being a Sports person has been part of National team of the country to which he belongs or has represented his country in international tournaments/events such as Olympic Games, Asian Games, Commonwealth Games, popular sports events telecast on television such as Kabaddi, Cricket IPL, etc. and competitive games at international level for that given sport, etc.
9. who has been host or one of the hosts or anchors or one of the anchors for any TV programs such as quizzes, cooking shows, news channels, comedy shows, dance shows, song shows, award functions and such other entertainment programs at least for one season or for a minimum of 10 episodes, as the case may be.
10. who has been winner or runners-up in any prominent/popular competitive program aired on TV/OTT platform or any prominent personality who has gone through a series of qualifying rounds (for elimination of competitors) which may be known as qualifying round, quarter finals, semi-finals and finals or by any other name.
11. who is a virtual character (fictional computer ‘people’ or avatars who have the realistic characteristics, features and personalities of humans) that bears influence on their audience/followers.
12. who in the view of Exchange is capable of influencing the opinion of viewers of the Advertisement.

Notwithstanding anything contained in the Code of Advertisement, decision of Exchange shall be final in determining if the person made a part of the Advertisement/material is a celebrity or not. 

5.18 Incentive/ referral schemes:

1. Enlisted IAs shall not provide any form of incentive/vouchers/ coupons/ certificates/ tokens, by whatever name called, to their clients/prospective investors for investment advisory account opening or any kind of subscription plan or for downloading mobile application etc. enlisted IAs shall not offer any scheme/plan to clients/prospective investors which compel them to undertake investment advisory with the enlisted IA, in order to avail/continue to avail investment advisory with the enlisted IA.
2. Enlisted IAs or anybody associated with the enlisted IA including the Associated Persons/ Associates/ Channel Partners/ Influencers/ Bloggers shall not promote or incentivize investment advisory, in any form including but not limited to distribution of cashback/ certificates /medals /gifts /prizes/ coupons/ tokens.
3. Enlisted IAs should abide by the guidelines/circulars/notices on incentives/referral schemes issued by SEBI / Exchange from time to time.

5.19 Schemes/leagues/competitions: 

1. Enlisted IA shall not deal or directly/indirectly sponsor or be associated in any kind of scheme/league/competition /quiz /game/ lottery/ engagement programs with general public/clients etc. which involves distribution of money/ certificates/ medals/gifts/ prizes/ coupons/ tokens/etc., or any form of incentive, monetary or otherwise, by whatever name called and has the effect of inducing the investors/clients to promote their brand in any manner or promote/incentivize investment.
2. No reference of enlisted IA’s name, logo, etc., can be made in any schemes/ leagues/ competition, etc.
3. Enlisted IAs shall not share any information of their clients with a third party, even with the clients’ consent, in case any third party is involved in launching schemes/ leagues/ competition, etc.
4. Enlisted IAs shall not take any financial liability, including any contingent financial liability, on account of any schemes/leagues/ competition, etc. launched by a third party.

5.20 Any promise or assurance of any fixed/guaranteed/ indicative returns to prospective/ existing clients. enlisted IAs are not permitted to undertake any business/ activity that is not allowed under the Bye-laws /Regulations /circulars/notices of SEBI / Exchange including operating any scheme of unauthorized collective investment/ portfolio management, promising indicative/guaranteed/ fixed returns/payments etc.

5.21 Recommendations such as BTST (Buy Today and Sell Tomorrow), ATST (Acquire Today and Sell Tomorrow) etc. cannot be mentioned in the Advertisement.

5.22 Logo of other entities cannot be used unless specific approval is obtained from the respective entities and the same was disclosed to Exchange prior to using the same.

6. Advertisements which do not require Exchange Approval

Following shall be exempted from seeking Exchange prior approval, provided there is no reference to the enlisted IA’s product or services or fees plans, or any other promotional activities etc. in the said communication: 

1. All communications/material /articles issued by the enlisted IA subject to holding necessary registrations required under the applicable SEBI Regulations:

1. For educational/information purposes, knowledge sharing/training and has no influence upon the investment decisions of any investor.
2. Any communication that is limited to market commentary concerning overall changes in the market on a particular day, or a discussion of economic news wherein there is no mention of any information that can influence the investment decisions of any investor.
3. Wishes /Greetings from company on events/festivals by the enlisted IA which does not involve any form of promotional activities.
4. Press release/ audio and video interviews by enlisted IAs which cannot influence the investment decisions of any investor.
5. All public communications, inviting applications for franchisees/authorized persons, etc. to drive the business expansion of the enlisted IA, provided such communication does not have any information that can influence the investment decisions of any investor.
6. Internal communications to existing clients (with whom IA has a valid agreement) related to advisory services being availed by these clients shall not be considered as advertisement and hence are exempted from approval of Exchange. Such internal communications with existing clients shall however specify that “the information is only for consumption by the client and such material should not be redistributed”. It shall also include standard warnings that “Investment in securities market are subject to market risks. Read all the related documents carefully before investing” and that “Registration granted by SEBI, enlistment as IA with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”.
7. Prior approval is not required for research reports disseminated to existing clients and which do not solicit clients or make any claim of a service or performance of IA. The research report shall be in compliance with all other provisions of the advertisement code.
8. Advertisements that have been approved previously and that are to be used without any change except changes to factual information whether it is issued by enlisted IA, Channel Partner or employee. However, such Advertisements should be issued within one year from the date of approval by Exchange.
9. Third party can publish any content related to the products/services offered by them, that has been approved by Exchange as content to be used by a enlisted IA within one year from the date of such approval.
10. If an Advertisement is approved by Exchange for a specific medium (for e.g., print media) and the same Advertisement without any change in the content is redesigned for a different medium (for e.g., social media, etc.) then no further approval would be required. However, such Advertisements should be issued within one year from the date of approval by Exchange.
    7. The present norms and code of Advertisement shall be applicable to any other agency associated with the IA concerned and issuing Advertisement wherein the IA has been named in the Advertisement. Further, copy of the Advertisement shall be retained by the IA for a period as may be prescribed by Exchange / SEBI from time to time.
    8. Approval provisions:
    9. Enlisted IAs can apply for Advertisement approval by logging on to the portal wherein a separate tab has been provided for Advertisement Application.
    10. A maximum number of 3 creatives can be included in one Advertisement for approval.
    11. Copy of the complete Advertisement including contents provided in the link shall be submitted in the form of PDF (videos to be uploaded on portal) to Exchange.
    12. Enlisted IAs shall provide an undertaking as per the format provided (Annexure A in portal) confirming compliance with the Code of Advertisement. (The format of undertaking is also readily available in Portal – advertisement section)
    13. Enlisted IAs shall provide an undertaking as per the format provided (Annexure B in portal) while submitting the draft content/script/Advertisement that has individuals forming a part of it, to Exchange for approval (The format of undertaking is also readily available in Portal – advertisement section).
    14. In case a creative is issued in any regional language, enlisted IA shall provide the translated version of the said Advertisement in English.
    15. Penalties:

Enlisted IAs not complying with the Code for Advertisement may be subject to suitable action(s) such as imposition of penalty from time to time. 

Notwithstanding anything contained in the Code of Advertisement: 

1. Enlisted IAs must comply with the code of conduct prescribed under the SEBI (Investment Advisers) Regulations, 2013 and all relevant Bye-laws, Regulations, guidelines, circulars, notices etc., prescribed by SEBI/ Exchange from time to time.
2. Enlisted IAs must comply with any additional guidelines as may be specified by SEBI / Exchange from time to time.
3. Decision of Exchange shall be final in determining whether the Advertisement is complying with this Code of Advertisement.

5. Advertisement Approval Number to be displayed while publishing advertisements

As a measure to inform the public at large about the genuineness of advertisements issued by IAs and approved by Exchange / BASL, IAs are hereby advised to ensure that all the advertisements approved from the date of this circular will display the application number as a part of the said advertisement while publishing the same. The application number is displayed in the advertisement approval letter issued by BASL / Exchange post approval of the advertisement.

The approval number should be displayed as “Advertisement Approval Number” followed by the application number in the advertisement. For e.g. In the advertisement approval letter: “……This is with reference to your application no. 000001 dated: XX/XX/XXXX along…..”, the Advertisement Approval Number is 000001. While displaying the same in the advertisement, it should be displayed as “Advertisement Approval Number:000001”. 

Further, advertisements approved by BASL/ Exchange but not yet issued as on the date of this circular should display the Advertisement Approval Number at the time of issuance of such advertisements.

6. Extension of timeline for compliance with enhanced qualification and experience requirements for Investment Advisers

SEBI, vide SEBI (Investment Advisers) (Amendment) Regulations, 2020, required individual investment advisers, principal officers of non -individual investment advisers and persons who are with the investment advisers and associated with investment advice to comply with enhanced qualification and experience requirements by September 30, 2023.

SEBI vide press release No. 21/2023 dated September 21,2023 has allowed time up to September 30, 2025 to comply with these requirements.

7. Redressal  of  investor  grievances  through  the  SEBI  Complaint  Redressal (SCORES) Platform and linking it to Online Dispute Resolution platform.

SEBI has revised the entire redressal process of grievances in the securities market, making the process more efficient by reducing timelines and by introducing auto-routing and auto escalation of complaint. 

In view of the same SEBI has revised the mechanism through SCORES portal and the Exchange has been appointed as the Designated Body for complaints against the entities, viz., Stockbrokers, Listed companies, Registrars to an Issue and Share Transfer Agents and Municipal Debt Securities, for monitoring the process of the redressal of investors’ grievances by such Entities.

Further SEBI vide Circular No. SEBI/HO/MIRSD/MIRSD-SEC-3/P/CIR/2024/34 dated May 02, 2024, has notified that the Grievance redressal and Arbitration/ Online Dispute Resolution (ODR) activities of IAs will be carried out by the Exchange.

Framework for handling of investor grievances received through SCORES and monitoring of the redressal process by designated bodies. 

1. Submission of the Complaint and handling of the Complaint by an Entity:

• The Entity shall review the investors’ grievances redressal mechanism from time to time.
• The Entity who is in receipt of the complaints of the investors (“Complaint”) through SCORES, shall resolve the complaint within 21 calendar days of receipt of such Complaint.
• The Complaints lodged on SCORES against any Entity shall be automatically forwarded to the concerned Entity through SCORES for resolution and submission of ATR. Entity shall resolve the Complaint and upload the ATR on SCORES within 21 calendar days of receipt of the Complaint. The ATR of the Entity will be automatically routed to the complainant.
• The Complaint against the Entity shall be simultaneously forwarded through SCORES to the relevant Designated Body (Exchange). The Designated Body shall ensure that the concerned Entity submits the ATRs within the stipulated time of 21 calendar days.
• The Designated Body shall monitor the ATRs submitted by the entities under their domain and inform the concerned entity to improve the quality of redressal of grievances, wherever required.
• SEBI may concurrently monitor grievance redressal process by entities and Designated Bodies.

2. First review of the Complaint:

• In case the complainant is satisfied with the resolution provided by the Entity vide the ATR or complainant does not choose to review the Complaint, the Complaint shall be disposed on SCORES. However, if the complainant is not satisfied, the complainant may request for a review of the resolution provided by the entity within 15 calendar days from the date of the ATR.
• In case the complainant has requested for a review of the resolution provided by the entity or the entity has not submitted the ATR within the stipulated time of 21 calendar days, the concerned Designated Body shall take cognizance of the Complaint for first review of the resolution through SCORES. The Designated Body shall take up the first review with the concerned Entity, wherever required. The concerned IA shall submit the ATR to the Designated Body within the time stipulated by the Designated Body.
• The Designated Body may seek clarification on the ATR submitted by the Entity for the first review. The concerned Entity shall provide clarification to the respective Designated Body, wherever sought and within such timeline, as the Designated Body may stipulate. The Designated Body shall stipulate the timeline in such a manner to ensure that the Designated Body submits the revised ATR to the complainant on SCORES within 10 calendar days of the review sought.
• The Designated Bodies shall be responsible for:
  • Monitoring and handling grievance redressal of investors against respective IAs under their domain as stipulated in the circular.
  • Taking non-enforcement actions including issuing advisories, caution letters for nonredressal of investor grievances and referring to SEBI for enforcement actions.

2. Second Review of the Complaint:

• The complainant may seek a second review of the Complaint within 15 calendar days from the date of the submission of the ATR by the Designated Body. In case the complainant is satisfied with the ATR provided by the concerned Designated Body or complainant does not choose to review the Complaint within the period of 15 calendar days, the Complaint shall be disposed on SCORES.
• In case the complainant is not satisfied with the ATR provided by the Designated Body or the concerned Designated Body has not submitted the ATR within 10 calendar days, SEBI may take cognizance of the Complaint for second review through SCORES.
• SEBI may take up the review with stakeholders involved, including the concerned Entity or/and Designated Body. The concerned Entity or/and Designated Body shall take immediate action on receipt of second review complaint from SEBI and submit revised ATR to SEBI through SCORES, within the timeline specified by SEBI.
• SEBI or the Designated Body (as the case may be) may seek clarification on the ATR submitted by the concerned IA for SEBI review complaint. The concerned entity shall provide clarification to the respective Designated Body and/or SEBI, wherever sought and within such timeline as specified. The second review Complaint shall be treated as ‘resolved’ or ‘disposed’ or ‘closed’ only when SEBI ‘disposes’ or ‘closes’ the Complaint in SCORES. Hence, mere filing of ATR with respect to SEBI review complaint will not mean that the SEBI review complaint is disposed.

8 TRAI – Directions regarding implementation of digital consent acquisition under Telecom commercial communications customer Preference Regulations, 2018 (6 of 2018)

The directions issued by Telecom Regulatory Authority of India (TRAI) regarding implementation of Digital Consent Acquisition under Telecom Commercial Communications Customer Preference Regulations, 2018 (6 of 2018) are attached as Annexure 1

9.   Periodic reporting format for Investment Advisers 

SEBI vide Circular No. SEBI/HO/MIRSD/MIRSD-PoD-2/P/CIR/2024/38 dated May 07,2024 mandated submission of periodic reporting for IAs on a half yearly basis.

Accordingly, enlisted IAs can file their periodic submissions for the period ending on March 31, 2024, by Aug 05, 2024 on the portal.  

For the subsequent half-yearly periods, the IAs shall submit periodic reports within 15 days from the end of the respective period.

FAQs on submission of periodic reporting is attached as Annexure 2.

10.    Submission of Annual Compliance Audit Report by Investment Advisers

As per SEBI (Investment Advisers) Regulation, 2013, investment advisers are required to conduct yearly audit in respect of compliance with the IA regulations and circulars, from a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India within six months from the end of each financial year i.e. on or before September 30. 

Investment advisers are also required to ensure that the adverse findings of the audit, if any, along with the action taken report thereof duly approved by the individual IA / management of the non -individual IA need to be reported within a period of one month from the date of the audit report but not later than October 31st of each year for the previous financial year. 

Investment advisers are advised to submit compliance of all the regulations mentioned in SEBI ((Investment Advisers) Regulation, 2013 as amended from time to time. 

Further, as per SEBI circular no. SEBI/HO/IMD/DF1/CIR/P/2020/182 dated September 23, 2020, Investment Advisers need to obtain and maintain on record an annual certificate from an auditor (in case of Individual IA) and its statutory auditor (in case of a non- individual IA) within six months of the end of the financial year, confirming compliance with the client level segregation requirements as specified in the SEBI (Investment Advisers) Regulation, 2013.

The said certificate shall also be submitted along with the annual compliance audit report. 

Accordingly, enlisted IAs need to submit the following: 

• Auditor Certificate.
• Annual compliance audit report in terms of Regulation 19(3) of the SEBI (Investment Advisers) Regulation, 2013 along with certificate confirming compliances with client level segregation on or before September 30, 2024. The year wise status of having carried out the annual audit needs to be mandatorily displayed on IA’s website.
• In case of any adverse findings in the annual compliance audit report, Action Taken Report (ATR) for each non-compliance, duly approved by the individual IA/management of the nonindividual IA within a period of one month from the date of the audit report but not later than, October 31, 2024

All the documents are attached as Annexure 3.

Enlisted IA are advised to mention the subject of their email for aforesaid compliance reporting as “ACR for FY ended 2023-2024 –  IA Name __________ .” and submit the same to email id : [email protected]