The Securities and Exchange Board of India (SEBI) has mandated that any person wishing to give investment advice must be qualified and registered under the Investment Advisor Regulations (IA Regulations), 2013. SEBI, on Tuesday, published proposed amendments to tighten the norms for investment advisors in India.
The amendment speaks of the use of AI in providing investment advice. It pins the responsibility on the investment advisors for the security, confidentiality, and integrity of client data and the accuracy of the advice generated.
The proposed amendment also suggested key changes to the definition of ‘Investment Advice’, the qualification for a person to be an investment advisor, and introduced norms regarding the maintenance of the website.