Sebi Poised to Simplify Registration for Investment Advisors

Sebi is set to release a consultation paper next week aimed at simplifying the registration process for investment advisors. The initiative is part of efforts to curb the influence of unregulated financial influencers. Proposed measures include relaxing registration requirements and introducing a digital platform for transparency.

Sebi will next week release a consultation paper aimed at simplifying the registration process for investment advisors, a senior official announced Friday.

This move is part of Sebi's ongoing efforts to curb activities of unregulated financial influencers. The Sebi board recently approved measures to police these influencers, particularly their partnerships with Sebi-regulated entities. Senior officials have noted that the complexities of registering as an investment advisor have contributed to the rise of unregulated influencers.

Kamlesh Varshney, a whole-time Sebi member, disclosed that the consultation paper, expected by Monday or Tuesday, will propose relaxing registration requirements for investment advisors and research analysts. He also mentioned plans to launch a digital platform to help investors identify registered advisors and streamline transactions. Additionally, the regulator will introduce a performance validation agency, with the NSE presenting a solution.

(With inputs from agencies.)