SEBI Streamlines Compliance for IAs and RAs with Mutual Fund Options

SEBI allows Investment Advisers and Research Analysts to use liquid mutual funds and overnight funds to meet deposit requirements. This move aims to ease compliance and promote business efficiency. A new settlement scheme for Venture Capital Funds is also introduced, addressing non-compliance with scheme tenures.

SEBI, the markets regulator, has authorized Investment Advisers (IAs) and Research Analysts (RAs) to use liquid mutual funds and overnight funds as alternatives to bank fixed deposits for compliance with deposit requirements.

The change is designed to address operational challenges faced by IAs and RAs while encouraging ease of business, with liquid mutual funds offering low-risk, less volatile solutions within the securities market.

Additionally, SEBI announced a settlement scheme for Venture Capital Funds, allowing them to resolve past non-compliance issues related to scheme tenure, offering a new liquidation period upon migration to the SEBI (Alternative Investment Funds) Regulations.

(With inputs from agencies.)