SEBI suggests measures to improve business environment for REITs and InvITs

The Securities and Exchange Board of India (SEBI) is currently inviting public feedback on proposed changes until May 22. One of the proposals aims to overhaul the regulatory framework for investment advisers. The move comes as part of the regulator’s efforts to enhance transparency and improve investor protection, recognizing the crucial role financial advice plays in shaping investment decisions.

Under the proposed changes, SEBI intends to introduce a more stringent registration process for investment advisers, requiring them to meet certain eligibility criteria and adhere to a code of conduct. The goal is to ensure that only qualified and trustworthy professionals are allowed to offer financial advice to investors. Additionally, the proposals include provisions for enhancing disclosure norms to provide investors with more comprehensive information about the services offered, fees charged, and potential conflicts of interest.

SEBI’s focus on strengthening the regulatory framework for investment advisers is a step in the right direction to safeguard investor interests and promote market integrity. By setting higher standards for professionals in the financial advisory space, the regulator aims to boost investor confidence and enhance the overall quality of advice provided to individuals seeking to make informed investment decisions.

Industry experts have welcomed SEBI’s proposed changes, emphasizing the need for a robust regulatory framework to weed out unscrupulous operators and protect investors from potential risks. By raising the bar for professionalism and ethical conduct, the regulator seeks to create a level playing field for all market participants and foster a culture of compliance and accountability within the financial advisory sector.

In addition to enhancing the registration process and disclosure requirements for investment advisers, SEBI is also considering measures to strengthen supervision and enforcement mechanisms to ensure compliance with regulatory norms. The proposed changes are part of the regulator’s broader agenda to promote fair and transparent markets, instill investor confidence, and boost overall market credibility.

To solicit feedback from stakeholders, SEBI has invited public comments on the proposals, signaling its commitment to consult industry participants and incorporate diverse perspectives in shaping the regulatory landscape. The regulator’s proactive approach to engaging with market participants reflects its responsiveness to evolving market dynamics and its dedication to ensuring a balanced regulatory environment that supports innovation while upholding investor protection.

Overall, SEBI’s efforts to revamp the regulatory framework for investment advisers are a positive development that underscores the regulator’s commitment to enhancing market integrity and safeguarding investor interests. By introducing stricter registration requirements, enhancing disclosure norms, and strengthening supervision and enforcement mechanisms, SEBI aims to create a more transparent and accountable ecosystem for financial advice, ultimately benefiting investors and promoting a culture of trust and confidence in the capital markets.