The Securities and Exchange Board of India (SEBI) has introduced a crucial amendment to the SEBI (Investment Advisers) Regulations, 2013 vide SEBI (Investment Advisers) (Amendment) Regulations, 2025, aimed at enhancing accountability and safeguarding investor interests.
The amendment inserts a new provision under Regulation 8, mandating that the deposit maintained by investment advisers must now be lien-marked in favour of a SEBI-recognised body or body corporate. This move is intended to bolster the administrative and supervisory framework governing investment advisers.
The new sub-regulation (3), empowers this recognised body to recover dues from the deposit if the adviser fails to honour payments arising from arbitration or conciliation proceedings, especially under SEBI’s Online Dispute Resolution (ODR) mechanism or any other specified framework.
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