Securities and Exchange Board of India — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

Ů Ů Ŋ Ŋ Securities and Exchange Board of India CIRCULAR SEBI/HO/MIRSD/ MIRSD-PoD-1/P/CIR/2025/003 January 08, 2025 To, All Registered Investment Advisers BSE Limited (Investment Adviser Administration and supervisory body- IAASB) Sir / Madam, Sub: Guidelines for Investment Advisers Securities and Exchange Board of India (SEBI), after considering the inputs from public consultation, has reviewed the framework for regulation of Investment Advisers (IA) and has notified Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024 (hereinafter referred to as "amendments to IA Regulations") on December 16, 2024. These amendments have come into force on the date of notification i.e. on December 16, 2024. The investment advisers shall ensure compliance with the aforesaid amendments to IA Regulations and the following guidelines specified under the amended SEBI (Investment Advisers) Regulations, 2013 (hereinafter referred to as "IA Regulations"): i. Deposit requirement: As per Regulation 8 of the IA Regulations, an investment adviser shall maintain a deposit of such sum, as specified by SEBI from time to time. The deposit requirements shall be based on the maximum number of clients of IA on any day of the previous financial year, as under: Ů Ů Ŋ Ŋ Securities and Exchange Board of India The deposit shall be maintained with a scheduled bank marked as lien in favor of Investment Adviser Administration and Supervisory body (IAASB), in the manner and form as may be specified by IAASB. The deposit amount may be revised for any change in applicable amount of deposit, based on the maximum number of clients on any day in the previous financial year, latest by 30th April of the subsequent financial year. The deposit requirements shall be reviewed by S