MUMBAI: Market regulator Sebi is planning to make it easier for new registered investment advisers to register by reducing entry barriers for them by cutting compliance costs and making it more lucrative for new entrants.
In a consulation paper released on Wednesay, the Securities and Exchange Board (Sebi) proposed easing of restrictions and regulations governing the registered investment advisers (RIAs). The proposals come after calls from the investment advisory community over concerns of high regulations for far too long. The paper is an acknowledgement by the regulator that the county needs more RIAs whose number only 961 now, to cater to a large investor base and has made key proposals.
Some of the proposals include making a graduate eligible to become an RIA as as opposed to the existing requirement of a post-graduate degree. In addition, Sebi has proposed that RIAs don’t need work experience while the present norms demand RIAs must either have a PG degree or a graduate degree with five years of work experience. If accepted, this would allow new RIAs to join the profession easily apart from allowing corporate RIAs to recruit junior level people, straight out of college, as para-planners and give them training on the job.