The Securities and Exchange Board of India (Sebi) is considering introducing a new set of rules in the financial market, Hindustan Times reports. The new norms will be enforced to address concerns of “conflict of interests” among firms, investment advisers, portfolio managers and other market intermediaries. The regulations will be based on a wide range of Sebi’s recommendations, based on responses to its concept paper “Regulation of Investment Advisers”.
The new guidelines may also make it compulsory registration of investment advisers to do away with wealth managers and private bankers to avoid confusion. Sebi has proposed a self-regulatory organization for advisers, but matters regarding financial products other than securities would be regulated by the respective sectoral regulators, for instance, penalty for mis-selling and violation of the code of conduct.
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