Relating to SEBI (Investment Advisers) Regulation, 2013

1. P&S
……..Problem and Solution under the Securities Exchange Board of India (Investment
Advisers) Regulation, 2013
The general topic regarding this regulation is “Investment Advice”. There‘re two basic problem
for every Investment Advisor what is Investment advice or not?
So we’ve divided into two parts:
Problem –I What is an Investment advice?
Problem –II What is effect of advice when an advisor provide stock advisory tips, Guaranteed
Money making Share Market Tips and other similar activities to general public or client?
Now find out the solutions of these problems with the help of SEBI (Investment Advisers) Regulation, 2013 and
Adjudication Order which earlier passes by SEBI.
Investment Advice
A clear and wide definition is given by this regulation and it’s also including financial planning according to
definition. According to regulation-2(l) the investment Advice is
(I)
- Investing in
- Purchasing
- Selling
- Otherwise Dealing Securities or investment product Benefit for
client
or
(II) Advice on investment portfolios Securities or investment product
(Written or oral)
Excluded
Investment advice (any medium which widely available for public)
- Newspaper - Broadcasting
- Magazine - Telecommunicationmedium
- Any other electronic
For example:
Mr. X who is an investment Advisor ‘ve number of client and gives some advice in different
areas take a test of his advice:
Condition Advice/ Suggestion/tip
(whatever name called)
Place of Advice Mode of
Advice
Advice or
not
Condition –I Buy Share of Company Y Ltd From any where Telephone/
Oral
Advice
Condition –II Buy Share of Company Y Ltd In Newspaper(widely
available for public)
Written Not Advice
Condition –III Buy Share of Company Y Ltd From any where Written Advice

2. So on the conclusion of this definition and example advice is same but place of advice is important
and yours advice is benefit for your client.
Now reaching the second problem effect of advice when an advisor provides advice to general public or
client?
On the basis of service providing, we‘re dividing services in to two sector one is private services
which providing to client or prospective client and other is public service. The solution is quite
easy and understandable a public advice never a basic of compliant against the Investment
Advisor.
Private Advice Public Advice
Simple one line conclusion of this sheet is Advice is wider term but it’s upon where you advice and what
you advice.
Your Salataris
For Ready4 compliance
Yogesh Kumar
B.com, LL.B, CS(E)
Type of
Advice
Advice/ Suggestion/tip
(whatever name called)
Advice to Statues of
Advice
Basis of
Compliant in
SEBI
Private
advice
Buy Share of Company Y Ltd Client Advice Basis of
Compliant
Public
Advice
Buy Share of Company Y Ltd widely available
for public
Not Advice Not the Basis of
Compliant