The investment advisory regulations of 2013 allowed a corporate entity to both distribute and advise, within itself, with proper segregation
The advisory regulations of 2013 by the Securities and Exchange Board of India (Sebi) were brought in to create a new class of advisers, who would primarily focus on offering advice on fee-only basis and assume a fiduciary responsibility. This was a major break from the past and a harbinger of things to come. But there were loopholes that could be exploited, and others that were open to interpretation. The new consultation paper—Consultation Paper on Amendments/Clarifications to the Sebi (Investment Advisers) Regulations, 2013—has addressed these concerns. Here are some of them.