Latest news with #NISM
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Business Standard
5 hours ago
- Business
- Business Standard
Sebi moots lighter regulatory framework for AIFs with accredited investors
Capital markets regulator Sebi has proposed a separate category of Alternative Investment Fund (AIF) schemes, consisting of accredited investors, which will enjoy a lighter-touch regulatory framework compared to regular AIFs. In a consultation paper issued on Friday, Sebi suggested that such accredited investors (AI-only schemes) could be allowed certain flexibilities, given that accredited investors are deemed to have the knowledge, financial capacity and risk appetite to make informed investment decisions without the same level of regulatory safeguards required for retail participants. The proposal includes exemptions from requirements such as maintaining pari-passu rights among investors, NISM certification for key investment team members, and the current limit of 1,000 investors per scheme, the regulator said. These schemes could also extend their tenure by up to five years, subject to investor approval, and in the case of trust-structured AIFs, managers could take over certain responsibilities currently mandated for trustees, it added. The regulator also said the move is in line with its long-term vision of gradually shifting from the present 'minimum commitment threshold' metric to 'accreditation status' as the primary criterion for determining investor sophistication in AIFs. However, both metrics would co-exist for now to avoid disruption in the industry, it added. Sebi noted that while the number of accredited investors remains modest, recent relaxations and proposed process improvements, including leveraging KYC registration agencies and streamlining accreditation norms are expected to boost participation. The Securities and Exchange Board of India (Sebi) has invited public comments on the proposals till August 29. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard
2 days ago
- Business
- Business Standard
Sebi proposes new lighter-touch approach for accredited investors for AIFs
The Securities and Exchange Board of India (Sebi) has proposed a separate type of alternative investment fund (AIF) scheme that would admit only "accredited investors". Such AIF schemes will get the benefit of a lighter regulatory framework. Sebi's latest consultation paper has proposed a gradual transition from the traditional minimum commitment threshold (currently at Rs 1 crore per investor) to using only accreditation status as the metric for investor sophistication in AIFs. During the transition, both metrics would coexist, enabling AIFs to launch special schemes, open exclusively to accredited investors, who are deemed better to assess risk and conduct due diligence, the regulator has proposed. Other benefits include extended tenure, where the scheme tenure may be extended up to five years, subject to approval by two-thirds of investors by value in the fund. Also, such schemes will get 'certification waiver', where key investment team members may be exempt from holding a mandated NISM certification, given investors' ability to conduct independent due diligence. Further, there will be no investor cap for such schemes, allowing them to bypass the existing limit of 1,000 investors per scheme. Also, in trust structures, managerial duty may assume those responsibilities typically assigned to trustees, subject to contractual terms. These relaxations mirror those already available to so-called 'large value funds' AIFs target sophisticated investors with higher risk appetites. Sebi had introduced the 'accredited investor' framework in 2021, allowing investors meeting strict income and net worth criteria to invest with greater flexibility. While the current count of accredited investors is modest, Sebi expects growth due to recent regulatory changes and further simplification of the accreditation process. The regulator believes that the proposed framework will help the AIF industry pivot towards an accredited investors-only segment.
Mint
3 days ago
- Business
- Mint
Sebi proposes to allow graduates from any discipline to become investment advisers, analysts
Graduates from any discipline, including engineering and law, could become investment advisers and research analysts as India's capital market regulator unveiled sweeping proposals to slash red tape and widen entry for such professionals. The Securities and Exchange Board of India's consultation paper released on Thursday proposes to drop subject restrictions for new entrants. The only mandatory hurdle is clearing the relevant National Institute of Securities Markets (NISM) exams or an accredited equivalent. The paper seeks to overhaul compliance, registration, and data disclosure requirements for such investment advisers (IAs) or research analysts (RAs). It aims to 'facilitate ease of doing business and address practical challenges in the current framework', following persistent demands from the industry, it said. The paper is open for public comments until 28 August. 'Why should an engineering graduate not be any better than an economics graduate after having created the required examination for licence?' said Harsh Roongta, member of the Sebi Alternative Investment Policy Advisory Committee (AIPAC) and founder of Fee Only Investment Advisers LLP. Once an aspirant clears the key criteria of NISM Series X-A and X-B examination before getting a licence, all candidates should be treated equally, Roongta said. These examinations are mandatory qualification exams prescribed by Sebi for investment advisers in India. Sebi also intends to allow IAs and RAs to share past performance data with clients, a long-standing demand. However, this can only be done on a specific client's request and must be certified by a chartered accountant, company secretary, or cost accountant, rather than being disseminated publicly. Once Sebi's new Past Risk and Return Verification Agency (PaRRVA) is fully operational, only PaRRVA-certified performance metrics can be used for advertising or disclosure purposes. Another significant change would let IAs provide second opinions and charge fees for assets purchased via other distributors, provided the investor is fully informed and gives annual consent. The intent, according to Sebi, is to ensure investors are not deprived of independent advice simply due to prior distributor relationships. To streamline entry, Sebi proposes scrapping requirements for multiple address proofs and detailed infrastructure documentation, noting that most players now operate virtually. Applicants will now only need to declare infrastructure adequacy and provide basic contact details. The paper seeks to eliminate the requirement for submitting CIBIL credit scores, net worth, asset and liability statements, and income tax returns. Sebi explained: 'The requirement to submit the credit report/score from CIBIL is hence redundant for determining the eligibility of the applicant for registration and removal of this requirement shall reduce the compliance burden for applicants.' Sebi also proposes to give individual IAs a more flexible timeline to convert into corporate entities after crossing 300 clients or ₹ 3 crore in annual fees. Advisers will, for the first time, be able to onboard clients and collect fees during the process—minimizing business disruption. While these proposals mark significant progress, experts caution that more structural changes may be required to substantially grow the pool of registered advisers and analysts. 'There is a big need for a graded regulatory structure. The number otherwise is going to fall,' said an industry observer.
Time of India
24-07-2025
- Business
- Time of India
Sebi issues FAQs pertaining to regulatory provisions for Research Analysts
Capital markets regulator Sebi on Wednesday asked persons associated with research services to obtain the required NISM ( National Institute of Securities Markets ) certification within one year. This one-year period is applicable from the date of this circular, Sebi said. Explore courses from Top Institutes in Please select course: Select a Course Category Finance Cybersecurity MBA Others healthcare Data Science Healthcare CXO Operations Management Management Artificial Intelligence MCA Project Management Data Science Design Thinking others Public Policy Technology Digital Marketing Product Management Data Analytics Degree Leadership PGDM Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bank Owned Properties For Sale In Tan Son Nhi (Prices May Surprise You) Foreclosed Homes | Search ads Search Now Further, institutional investors are not required to give signed consent on the terms and conditions, including the Most Important Terms and Conditions (MITC). However, Research Analysts (RAs)/research entities will still share and disclose these terms to them, according to the circular. These decisions have been taken based on feedback from RAs and research entities, and to make compliance easier. Additionally, in order to provide clarity and guidance for compliance by RAs with the regulatory provisions, Sebi has issued clarifications in the form of Frequently Asked Questions (FAQs). Under this, Sebi stated that a research report does not include communications related to general trends in the securities market, discussions on broad-based indices, or commentaries on economic, political, or market conditions. Live Events It also clarified that research reports do not include periodic reports prepared for unit holders of Mutual Funds or Alternative Investment Funds, or clients of Portfolio Managers and Investment Advisers; internal communications not shared with current or prospective clients; statistical summaries of financial data of companies; and technical analyses relating to demand and supply in a sector or index. Sebi further clarified that journalists employed by media agencies such as newspapers or television are not required to register with it. However, if they make recommendations or offer opinions on securities or public offers, such recommendations must be based on research reports of registered research analysts or other Sebi-registered intermediaries permitted to issue research reports. The regulator said that a person located outside India can issue a research report or analysis on securities listed or proposed to be listed on Indian stock exchanges. However, before doing so, the person is required to enter into an agreement with a research analyst or research entity registered under the RA regulations. Regarding trading restrictions, Sebi said that independent research analysts, part-time research analysts, individuals employed as research analysts, or their associates would not deal in or trade any securities that the research analyst recommends or follows within 30 days before and 5 days after the publication of a research report on the subject company. They are also prohibited from dealing in securities they review in a manner contrary to their recommendations. Additionally, they shall not purchase or receive securities of an issuer before its initial public offering (IPO) if the issuer is principally engaged in the same type of business as companies that the research analyst follows or recommends.
Economic Times
16-07-2025
- Business
- Economic Times
I earn Rs 1 lakh per month, how can I build a retirement corpus of Rs 4 crore in 12 years?
Getty Images How to build a retirement corpus of Rs 4 crore? I am a working professional, earning Rs 1 lakh per month. The household expenses are taken care of by my husband. I want to build a retirement corpus for myself and currently have Rs 40 lakh in savings. With a monthly income of Rs 1 lakh and 12 years left for retirement at 60, I want to know how I should invest to build a corpus of Rs 4 crore. I also want to know about different investment options like debt and equity. Is there any workshop where I can learn more and clarify my doubts about investments? Please help me plan my investments effectively. Rushabh Desai Founder, Rupee With Rushabh Investment Services: Since your husband is managing the household expenses, you can take risk and opt for equity to invest your entire monthly earnings of Rs 1 lakh and savings of Rs 40 lakh to build a retirement corpus for yourself. Assuming 12% CAGR return in equity for 12 years, an SIP of Rs 1 lakh and lump sum of Rs 40 lakh will give you around Rs 4.78 crore (pre-tax). Hence, you will be able to achieve your retirement goal of Rs 4 crore. Assuming that you will be able to take further risk in equity, you can consider investing in a total of five funds, with one each of growth-oriented flexi-cap fund, value-oriented flexi-cap fund, momentum index fund, contra fund and growth-oriented mid-cap fund. This will help you diversify across different market caps and styles, to help your portfolio generate superior risk-adjusted returns. Remember to keep a buffer period of around a year or two at the end of your time horizon, and redeem only in good market conditions to maintain optimum returns. If you are keen to learn about equity and debt investments, you can consider courses from institutions like NISM, BSE and/or NSE. They have a wide variety of course options to choose from. You can also visit their websites for more information. I work in a private company and invest in mutual funds. My goal is to build a corpus over 20 years and start a Systematic Withdrawal Plan (SWP) when I am 60. To manage market volatility, I plan to shift from equity to debt or fixed-income options before starting the SWP. Which debt fund category or fixed-income instruments are best suited for this purpose, ensuring safety and stability? Also read | I have multiple health insurance policies. How can I split a large claim across different health insurers? Rushabh Desai Founder, Rupee With Rushabh Investment Services: Volatility is an inherent part of equity markets, and there's no reason to be alarmed by it. Historically, markets have gone through phases of correction and recovery, and this current dip is no different. In fact, such corrections offer a valuable opportunity to invest at lower levels, allowing you to accumulate more mutual fund units. When the markets recover and enter a bull phase, these additional units can lead to superior risk-adjusted returns. That's why it's important to view corrections positively. Given your 20-year investment horizon, it's advisable to stay invested in quality equity mutual funds across different market capitalisations. This approach will help you build wealth, beat inflation, and support your post-retirement needs. Over time, especially towards the end of the 20-year period, the impact of market volatility will be significantly reduced. As you approach retirement at age 60, you can gradually shift to a more conservative strategy. Consider hybrid funds within the equity savings category, which typically maintain a 15–25% allocation to pure equity. Alternatively, you can invest in high-quality debt funds from the corporate bond category for SWPs. If you still find the volatility of pure equity funds difficult to handle, you may opt for hybrid funds that follow counter-cyclical or valuation-conscious strategies—typically found in the dynamic asset allocation category. These offer a more balanced approach while still participating in market growth. Ask our experts Have a question for the experts? etwealth@ (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of N.R. 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