Operating Guidelines for Investment Advisers in International Financial Services Centre (IFSC) – Amendments
Summary
This circular amends the Operating Guidelines for Investment Advisers in International Financial Services Centres (IFSC) to align with recent regulatory developments. It modifies eligibility criteria, client scope, net worth requirements, and audit obligations for IFSC-based Investment Advisers. The amendments are issued under Section 11(1) of the SEBI Act to protect investor interests.
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Any entity desirous of operating in IFSC as an Investment Adviser may form a company or LLP to provide investment advisory services, unless already a company or LLP in IFSC.
IAs shall provide investment advisory services only to persons referred in Clause 9 (3) of the IFSC Guidelines and ensure compliance with applicable guidelines issued by relevant overseas regulators for non-resident clients.
The IA or parent entity shall fulfil the net worth requirement separately and independently for each activity undertaken under the relevant regulations.
An IA shall ensure to conduct annual audit in respect of compliance with Investment Adviser Regulations and these guidelines from a chartered accountant or a company secretary.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors and regulate the securities market.
Source: SecMarx — Operating Guidelines for Investment Advisers in International Financial Services Centre (IFSC) – Amendments. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.