Sebi Introduces Measures to Strengthen Investment Adviser Ecosystem and Regulatory Framework

The Securities and Exchange Board of India (Sebi) has initiated several measures to strengthen the investment advisory ecosystem amid a decline in registered investment advisers. These include forming a working group to review regulatory overlaps between mutual fund distributors and investment advisers, developing a standardized light-touch penalty structure, creating a common advertisement code for intermediaries, and launching a digital platform called SEBI SETU for end-to-end regulatory guidance. Additionally, Sebi is simplifying certification for non-core advisory roles to enhance compliance and accessibility.