Operating Guidelines for Investment Advisers in International Financial Services Centre
Summary
This circular issues operating guidelines for Investment Advisers in International Financial Services Centres (IFSC) under the SEBI Act, 1992. The annexure details eligibility criteria, including net worth and professional qualifications, for entities seeking registration to operate in an IFSC. It also specifies compliance requirements such as annual audits and fee structures payable to SEBI.
Text
Any entity, being a company or a limited liability partnership (LLP), which has the minimum prescribed net worth... can act as an Investment Adviser (IA) in the IFSC
Persons seeking registration... shall provide investment advisory services only to those persons referred in Clause 9 (3) of the IFSC Guidelines
Partners and representatives... offering investment advice shall have: a. at all times, a professional qualification or post-graduate degree... in finance... b. an experience of at least five years in activities relating to advice...
Partners and representatives... shall have, at all times, a certification on investment advisory services... from National Institute of Securities Markets (NISM)... However, certification from NISM shall be mandatory... for Indian securities markets
An applicant shall have a net worth of not less than USD 1.5 million... In case the IA is set up as a subsidiary... if the subsidiary does not meet the criteria, the net worth of the parent can be considered
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...
In case of overseas applicants, a net worth certificate (not more than six months old...) by a chartered accountant or its equivalent... shall be provided
In case of overseas applicants, a credit score from a body similar to CIBIL, if existing in the applicant’s jurisdiction, shall be provided
Application fees USD 750; Registration fee for grant or renewal of certificate USD 7,500
Source: SecMarx — Operating Guidelines for Investment Advisers in International Financial Services Centre. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.