SEBI’s New Proposals to Ease the Life of Investment Advisers and Research Analysts (August 2025) SEBI has come up with several new proposals to make the life of Investment Advisers (IAs) and Research Analysts (RAs) easier. These changes are aimed at reducing paperwork, easing entry barriers, and providing more flexibility—while still ensuring investor protection.
Let’s break it down in simple words:
1. Showing Past Performance (With a Catch): Right now, IAs and RAs cannot show their past performance unless verified by SEBI’s new agency PaRRVA. But what about all the good work done before PaRRVA existed?
New Proposal:
- IAs and RAs can share past performance with prospective clients only if the client asks for it, and it must be certified by a CA/CS/CMA.
- This data cannot be shown publicly (on websites, social media, ads, etc.).
- A clear disclaimer must be added, saying the data is not SEBI-verified.
- After 2 years of PaRRVA’s launch, only PaRRVA-verified data can be shown.
2.
Second Opinion on Pre-Distributed Assets: Currently, if a client already has assets bought through a distributor, the IA can’t charge advisory fees on those assets.
New Proposal:
- As may be allowed to give second opinion and charge fees (up to 2.5% annually) on such assets.
- But the client must be informed that they are paying both the distributor and the IA.
3.
More Time for Corporatization: If an individual IA reaches 300 clients or earns ₹3 crore in a year, they need to convert to a company.
Problem: The current 3-month deadline is too tight.
New Proposal: - IAs can now take 3 months to apply for conversion and another 3 months to complete it.
- During this time, they can continue onboarding clients and collecting fees.
4.
No More Address Proof Headache: Currently, you need to give address proof of all team members while applying.
New Proposal:
- Only a declaration of address will be needed. No documents.
- SEBI will still verify mobile/email via OTP.
5.
Infrastructure Details Not Required: SEBI currently asks for office space, furniture, communication tools, etc.
New Proposal:
- No need to give these details anymore.
- Just a self-declaration saying you have adequate setup is enough.
6.
No Need for CIBIL Report: Currently, SEBI requires a credit report from CIBIL.
New Proposal:
- This is being removed, as SEBI already checks your background via other databases.
7.
No Need to Show Net Worth, Assets, or ITRs: Earlier, IAs and RAs had to show net worth, assets-liabilities, and tax returns.
New Proposal:
- This is no longer needed since SEBI has introduced a mandatory security deposit system instead.
8.
Relaxed Education Qualifications: Right now, only graduates in finance-related fields can apply.
New Proposal:
- Now, graduates in any field (like engineering, law, etc.) can apply, provided they clear the relevant NISM exams.
- Also, those who’ve done specific PG Programs from NISM
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