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SEBI Regulates Investment Advisors and Distributors of Financial Products to Segregate Services

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 24, 2020 2:51 PM 2 min read
Editorial

Market regulator asks investment advisors and distributors of financial products to segregate their services.

 

MONEY MATTERS

SEBI requires investment advisors and distributors of financial products to segregate services.

To Each His Own

Markets regulator SEBI has cleared norms that will require investment advisors and distributors of financial products to segregate their services.

 

The norms bar investment advisors from providing distribution services and vice-versa.

 

The new laws require firms that advise clients on buying, selling stocks or mutual funds to segregate their services from distribution of those products. SEBI said it will also introduce enhanced eligibility criteria for registration as an investment advisor, including for net-worth qualification and experience. There will be a provision for grandfathering existing individual advisors. [Hindu BusinessLine]

 

Indians invested the most in gold ETFs in more than seven years in January.

Sands of Gold

Indians invested the most in gold ETFs in more than seven years in January as risks to the global economy escalate, as per the Association of Mutual Funds in India.

 

Assets managed by the 11 funds selling the securities rose to $870m - 31% higher YoY. [Livemint]

 

Extra Crunch

Finance Minister Nirmala Sitharaman in the Union Budget 2020 announced that employees at young startups would get the option to defer payment of tax on employee stock options (ESOPs) - instead of paying tax at the time of stock allotment, they can pay it when they exit the company, at the time of selling the shares or five years after allotment, whichever is earlier.

 

Following this, a bunch of startups are tweaking their compensation packages to include more ESOPs. [ET Tech]

FIN.

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