"We have received a very detailed feedback and we are undergoing a process of discussion and shortly we will come out with regulations (on investment advisors)," said Prashant Saran, Sebi whole time member.
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Thought the regulator has not set any timeline for the release of the guidelines but has said that it will release it once a consensus has been reached.
SEBI had proposed to bar investment advisors from acting as agents for promoting financial products in September and the person who interfaces with the customer should declare upfront whether he is a financial advisor or an agent of the manufacturer.
According to the regulator, the entities, including banks and fund managers, will have to be registered with a self-regulatory organization (SRO) as investment advisors.
Justifying the introduction of these norms that will put restrictions on the financial advisors, Saran said that many financial products are becoming complicated and it is not easy for even an educated person to understand and analyze them.
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