NEW DELHI: Markets regulator Sebi on Thursday came out with guidelines for entities for operating as investment advisers in International Financial Services Centre (IFSC), under which advisers need to have a net worth of at least $1.5 million.
The decision has been taken following the representations received from various stakeholders, the Securities and Exchange Board of India (Sebi) said in a circular. Under the framework, any recognised entity or entities desirous of operating in IFSC as an investment adviser (IA), may form a company or LLP to provide investment advisory services.
The country’s only IFSC is in GIFT City near Ahmedabad in Gujarat. An applicant needs to have a net worth of not less than $1.5 million (about Rs 10.5 crore). In case the IA is set up as a subsidiary, the net worth requirement is to be met by the subsidiary itself. However, if the subsidiary does not meet the criteria, the net worth of the parent can be considered.
The investment adviser needs to fulfil the net worth requirement separately and independently for each activity undertaken by it under the relevant regulations. Those having experience of at least five years in activities relating to advice in financial products or securities, or portfolio management, or investment advisory services are also eligible.