Sebi unveils draft rules for investment advisers

Sebi unveils draft rules for investment advisers

New Delhi: The capital market regulator Securities and Exchange Board of India (Sebi) has released draft regulations for bringing investment advisers in the country under its regulatory control. Sebi (Investment Advisers) Regulations 2007, lays out the definition of an investment adviser and exclusions from such definition.

The regulations also categorically define the “investment advice" as advice rendered for sale or purchase of securities for a consideration, which could also be a non-cash consideration.

Mint reported about these regulations on 30 September and 5 October. These regulations have excluded advisers in the media and those who do not give advice on specific securities.

The regulations also prescribe a certification process for each investment adviser, their general obligations and disclosure requirements to clients.

Advisers have to disclose the amount of compensation, commission or rewards they receive for recommending a stock to the client. Advisers complying with the norms will be eligible for certification by a self-regulatory organization, which may be prescribed by Sebi.

Intrex India gets $10 mn funding from VC firms

Mumbai: Essel Group-owned Intrex India Ltd, which promotes prepaid payment solution Itz Cash, has received $10 million (Rs39.3 crore) funding from venture capital (VC) firms Matrix Partners India and Intel Capital.

A Matrix spokesperson confirmed the deal but gave no details of the size of the stake. Matrix managing director Avnish Bajaj was not available for comments.

Itz Cash is a multi-purpose prepaid cash card that enables consumers to shop online, book railway tickets, buy Internet connection packages and pay utility bills.

It was launched in 2003 primarily to attract buyers for the group’s Playwin lottery game.

Pacifica to set up hotel, other projects in Gujarat

Mumbai: The Gujarat government will sell 9,000 sq. m of land to the US-based real estate firm Pacifica Capital Group Inc. for Rs22.87 crore, the state’s tourism secretary Atanu Chakraborty said. Pacifica will set up hotel and other tourism related projects on the property, which is located in Sola village in Ahmedabad, within three years, he said.

The decision to sell the property was taken on Tuesday by an empowered committee set up by the state cabinet.