CIRCULAR
SEBI/HO/IMD/IMD-I DOF1/P/CIR/2021/694 December 21, 2021
To
All Investment Advisers
Dear Sir / Madam,
Subject: Investment Advisory Services for Accredited Investors
1. The amendment to SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”)
notified on August 03, 2021 (available at link), read with the Circular dated August 26,
2021 inter-alia introduced the concept/framework of “accredited investor” in IA
Regulations.
2. Para 2(iii) of the SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/182 dated
September 23, 2020 (“Circular”) inter alia specifies the modes and limits of fees that
can be charged by an Investment Adviser (IA) from a client. It has been decided that
in case of accredited investors, the limits and modes of fees payable to the IA shall
be governed through bilaterally negotiated contractual terms and the provisions of
para 2(iii) of the Circular shall not be applicable. The other provisions of the Circular
shall remain unchanged.
3. This circular is issued in exercise of the powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 and Regulation 29 of the
Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, to
protect the interests of investors in securities and to promote the development of and
to regulate the securities market.
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4. The circular is available on SEBI website at www.sebi.gov.inunder the categories
“Info for –Investment Advisers” and "Legal framework -Circulars".
Yours faithfully,
Manaswini Mahapatra
General Manager
+91-22-26449375
manaswinim@sebi.gov.in
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