• Segregation of Advisory & Distribution activities at the client level to avoid conflict of interest. Further, the individual investment adviser shall not provide distribution services.
• Implementation services (execution) via direct schemes/products in the securities market shall be allowed to investment advisers for the convenience of the investors.
• To mandate an agreement between the investment adviser and the client incorporating the key terms and conditions regarding investment advisory services for greater transparency.
• Bringing clarity in payment of fees and the introduction of upper limit on the fees charged to investors.
• Enhanced eligibility criteria for registration as an investment adviser including net worth, qualification, and experience requirements while grandfathering existing individual investment adviser from complying with the enhanced qualification and experience as specified by the Board.
• A person dealing in the distribution of securities shall not use the nomenclature “Independent Financial Adviser (IFA)” or “Wealth Adviser “or any other similar name, unless registered with SEBI as Investment Adviser.

The market regulator will soon come out with a circular to ensure “Karvy-like incidents” don't take place or are contained, said Chairman Ajay Tyagi. Karvy has told the National Stock Exchange that it will pay the fund shortfall of Rs 678 crore by March by selling stake in a company. “We will wait and see,” he said at his last press conference at the board’s chief.

Other Highlights:

• Only 50 percent of top 500 companies had segregated Chairman, MD roles. Implementation issues led to extending deadline.
• Actively looking at recategorisation of mutual funds, will come out with guidelines.
• There will always be challenges, it is a vibrant organisation; enforcement needs further improvement.

• Propose to amend MF regulations to provide for non-bank custodians for gold or gold-related instruments of gold ETFs.
• Sponsor or an AMC shall invest in close ended schemes as well, in order to bring uniformity across schemes. Currently, the investment by the sponsor or an AMC is mandatory in all schemes except close ended schemes.

• Approved amendments to InvIT and REIT regulations.
• To provide for fast-track rights issue of units by REITs and InvITs.
• Alternative criteria proposed for InvIT investment manager qualification requirements.
• InvIT investment manager’s directors/partners/employees should have 30 years of combined relevant experience

The SEBI board approved the insertion of a "suitable explanation to Regulation 79 (Manner of creating pledge in Depository) under SEBI (Depositories and Participants) regulations, 2018, that the word pledge shall include re-pledge of securities for margin and/or settlement obligations of the client or such other purposes specified by the board from time to time."