SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2021/694

Investment Advisory Services for Accredited Investors    

1. The amendment to SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”) notified on August 03, 2021 (available at link), read with the Circular dated August 26, 2021 inter-alia introduced the concept/framework of “accredited investor” in IA Regulations. 

2. Para 2(iii) of the SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/182 dated September 23, 2020 (“Circular”) inter alia specifies the modes and limits of fees that can be charged by an Investment Adviser (IA) from a client. It has been decided that in case of accredited investors, the limits and modes of fees payable to the IA shall be governed through bilaterally negotiated contractual terms and the provisions of para 2(iii) of the Circular shall not be applicable. The other provisions of the Circular shall remain unchanged.

3. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 29 of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, to protect the interests of investors in securities and to promote the development of and to regulate the securities market.