Investment Advisors

New SEBI regulations may not be great news for RIAs Over the last few years, SEBI has been quite perturbed by the breed of advisors who literally survive on giving hot tips to the financial market customers. Most small investors tend to believe these tips as they are easy to understand and simple to execute.…

Penalizing CRAs

Rating agencies lack information but they need to be accountable Last week, SEBI penalized ICRA and CARE Rs.25 lakhs each for laxity in due diligence in the IL&FS case. Some of the proxy advisories were of the view that the penalty was too small considering the magnitude of the default by IL&FS. But that is…

SEBI bans pooling

Mutual fund distribution may undergo a shift as pooling is moving out Last week, SEBI announced potentially far-reaching changes in the way mutual funds are distributed in India. A full 7 years after Direct Plans were launched in India; regular plans of mutual funds continue to dominate the wallet share of customers. In a direct…