Notification F. No. SEBI/LAD-NRO/GN/2025/253, Dated: 04.08.2025
Amendment to Regulation 8
SEBI has introduced amendments to Regulation 8 of both the Investment Advisers (IA) Regulations and the Research Analyst (RA) Regulations. These amendments specifically address the requirements related to capital adequacy for investment advisers and research analysts registered with SEBI.
Lien on Capital Adequacy Deposits
Under the revised framework, capital adequacy-related deposits maintained by IAs and RAs must now be marked as a lien in favour of a SEBI-recognised supervisory body. This body will be responsible for overseeing the activities of investment advisers and research analysts, ensuring compliance with regulatory norms.
Purpose of the Lien
The lien on these deposits serves as a safeguard for investor protection. In cases where an adviser or analyst fails to meet their obligations arising from arbitration, conciliation, or any other SEBI-specified dispute resolution process, the funds under lien may be utilised to clear such dues.
Enhanced Supervision and Accountability
This amendment strengthens the supervisory framework for IAs and RAs, ensuring that there are readily available funds to settle disputes. It also promotes accountability and reinforces investor trust in the advisory and research ecosystem by ensuring that regulatory and dispute-related obligations are met promptly.
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