SEC proposes allowing financial advisors to display past performance results
The Securities and Exchange Board of India (SEBI) has proposed changes to the rules for investment advisors and research analysts in a bid to enhance their ability to serve clients effectively. These proposals, which are subject to further consultation and approval, aim to address practical challenges within the current regulatory framework and facilitate ease of doing business.
Key proposed measures include permitting investment advisors (IAs) and research analysts (RAs) to provide past performance data to clients upon specific request, provided such data is certified by a member of ICAI/ICSI/ICMAI and accompanied by a disclaimer. This communication must be on a one-to-one basis and not publicly shared on websites or through any public media.
IAs will also be allowed to provide a second opinion on pre-distributed assets to clients. Easing compulsory corporatization requirements for IAs, relaxing education criteria for both IAs and RAs, and relaxed documentation requirements such as furnishing proof of address, CIBIL report, net worth/asset liability statements, and infrastructure details are other proposed changes.
These proposals were released in a consultation paper in early August 2025 by SEBI, inviting public comments to further refine amendments aimed at enhancing operational flexibility while continuing investor protection. This initiative is part of broader regulatory reforms by SEBI in 2025 designed to improve ease of business, reduce compliance burdens, and increase transparency and flexibility across financial market participants.
However, no final decision has yet been announced, and the consultation process is ongoing, indicating these remain proposals subject to stakeholder feedback and possible modification before formal implementation.
Elsewhere, the PE fund manager Smartowner is facing legal issues. Reports suggest that investors are considering filing criminal complaints against the company. The specific nature of these legal issues is not yet clear.
In a separate development, Jane Street, a global quantitative trading firm, is not cooperating with the India tax department in an ongoing probe. Details about the nature of this probe are scarce.
These updates provide a roundup of the latest developments in the Indian financial market, highlighting the ongoing efforts by SEBI to improve the regulatory environment and the challenges faced by some market participants.
Investing in the business sector may now become more transparent due to the proposed changes by SEBI, allowing investment advisors (IAs) and research analysts (RAs) to share past performance data to clients upon request, certified by a member of ICAI/ICSI/ICMAI and accompanied by a disclaimer. Moreover, IAs will be allowed to provide a second opinion on pre-distributed assets to clients as part of the SEBI's regulatory reforms in 2025, designed to enhance operational flexibility, reduce compliance burdens, and increase transparency and flexibility across financial market participants. However, the final decisions on these proposals are yet to be announced, indicating ongoing stakeholder feedback and possible modification before formal implementation.
