"Based on the representations received from various bodies/associations seeking extension of the timeline to furnish the comments/suggestions, it has been decided to grant time till July 31, 2017 for submitting the comments on the consultation paper," Sebi said in a statement.
On June 22, Sebi came out with a proposal to amend its norms for investment advisers, under which they will have to segregate their advisory and product distribution businesses even as their registration rules would be relaxed.
Besides, the regulator proposed to bring the ranking of mutual fund schemes under its ambit.
Also, it proposed to relax the educational qualification criteria for employees of registered investment advisers. The net-worth requirement and registration fee was also proposed to be reduced.
"To prevent the conflict of interest that exists between 'advising' of investment products and 'selling' of investment products by the same entity/person, there should be clear segregation between these two activities.
In addition, banks, NBFCs and various corporate bodies would have to set up a separate subsidiary for investment advisory services. Under current rules, such services can be provided through a separate division or department.
With regard to mutual funds, Sebi proposed that distributors should not give any investment advice. They can only explain the features of MF schemes and can distribute suitable schemes to the investors describing material facts of the scheme and the associated risk factors.
(Inputs from ET)
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of politiconation.in . The writers are solely responsible for any claims arising out of the contents of this article.