Investment Advisers Need to get CIBIL Credit Report for Continuing their Services

Investment advisers need to have a good credit report and to have a thorough research capacity to get permission to practice as advisers to investors who wish to invest in stocks and capital markets. After consulting with regulators such as RBI, IRDA and PFRDA, market regulator SEBI (Securities and Exchange Board of India) has decided to propose the new regulations for investment advisers.

Many changes in the draft regulations proposed by SEBI were suggested by the board. The entities seeking to become investment advisers are required to get a credit report or score from CIBIL and needs to submit the details of research facilitated. They are also required to submit the details of their in-house and other research capabilities.

The new regulations make it mandatory for investment advisers to get registered with SEBI and these would come into effect three months after their notification.

Financial Express

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