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With the frequency of amendments in the SEBI (Investment Advisers) Regulation, 2013 in recent times one can opine that the regulatory compliance would be the need of the hour for the Investment Advisors (IAs). Self-Regulatory Organization (SRO) is under the limelight for the past one year and now SEBI has recognized BSE Administration and Supervision Ltd. (BASL) a wholly owned subsidiary of BSE Ltd as Investment Adviser Administration and Supervisory Body (IAASB).

BASL is recognized for an initial period of three years from June 01, 2021, to supervise all the existing IAs and the new applicants who are desiring to become IA as follows: -

  • All the SEBI Registered IAs are required to submit reports to BASL in such manner as may be specified by BASL.
  • IAs who are currently complying with the regulations notified by SEBI will be required to additionally comply with the regulations, notifications and other communications as issued by BASL from time to time.
  • IAs would enjoy the rights and privileges of being a member of BASL, however the same would be subject to and in accordance with the applicable laws, byelaws of BASL and other communications made by SEBI and BASL from time to time.
Membership with BASL for Investment Advisers

 The process for obtaining membership with BASL is as follows

1. For existing IAs who have renewed their registration before March 31, 2021 or are registered before March 31, 2021 and renewal is not due as on March 31, 2021

  1. Register at the BASL portal https://membership.bseasl.com/. In case of non-individual applicant, the authorized person needs to submit the application.
  2. All the required and relevant details of the membership application to be entered and attachment of the documents to be made duly self-attested.
  3. Upon receipt of the membership application, BASL to issue the certificate subject to the fulfillment of the specified norms.
  4. Fees to be paid only if BASL/ SEBI has specifically mentioned about it in a prescribed manner.
  5. The tenure of the membership of the IAs will be decided by BASL and to be renewed as per the norms specified from time to time. However, IAs to ensure that such renewal application made atleast three months prior to expiry of the validity period.

2. For new applicants who are intending to register themselves as an IA

  1. Register at the BASL portal https://membership.bseasl.com/. In case of non-individual applicant, the authorized person needs to submit the application.
  2. All the required and relevant details of the membership application to be entered and attachment of the documents to be made duly self-attested.
  3. Upon submission, BASL to confirm to submit to the application to SEBI subject to submission of all the requisite documents.
  4. After receipt of confirmation from BASL, applicant to make an application to SEBI for registration as an IA.
  5. SEBI to approve the application provided all the necessary declarations and documents are provided by the applicant.
  6. Upon approval by SEBI, applicant to pay the membership fee to BASL and SEBI to grant the certificate thereafter.
  7. After receipt of certificate from SEBI, BASL to issue membership certificate as per the applicable norms of the membership.

Fees

IAs are required to two types of fees, one is to the BASL for the membership and to SEBI as registration fees. Fee structure of BASL is as follows:

 

Category

Annual Membership Fees (Rs.)

3 years block membership fees amount (Rs.)

New Application

Renewal Application

New Application

Renewal

Application

Individual / Partnership

2,000/-

1,800/-

6,000/-

5,400/-

Body Corporate / LLP

1,00,000/-

99,000/-

3,00,000/-

2,97,000/-

One may note that SEBI has reduced the registration fees with effect from 1st April 2021, which is passed on to membership fees to BASL, thereby the no impact in reduction of fees to the IAs.

Partnership firms are not considered as non-individuals for the purpose of payment of fees but are considered as individuals, thereby partnership firms enjoy the benefit of lower fees.

The said fees to be paid by way of NEFT to below mentioned bank account details of BASL:

BASL Bank Account with: ICICI Bank Ltd.

Bank Account No: 000405540374

Bank Branch Address: 215, Free Press house, Free Press Marg, Nariman Point, Mumbai – 400021.

Bank IFSC Code: ICIC0000004

 

One the IA makes the payment of fees, the details of the payment to be communicated to BASL by way of email with subject line “BASL Membership FEES payment details (Trade Name of BASL member - BASL Membership ID)” in the format prescribed as mentioned below:

No.

BASL Mem Code

Member Trade Name

BASL Membership Fees for period

Amount Paid (Rs)

UTR No.

Payer Bank

Branch

Payment Date

                 

The above-mentioned process has to be followed by IAs to become members of BASL. Upon becoming member of BASL, members would be required to comply with the norms of BASL which include:

Change in details of the IA

For any change in the name, address, shareholding patters, duplicate certificate or any other details as mentioned in the application of registration as an IA, IA has to first intimate and obtain approval of SEBI and the same will be updated by BASL after the approval of such change by SEBI.

Reporting & Submission

IAs upon becoming members of BASL, would be required to carry-out periodic reporting and submission of documents as required by BASL from time to time. Also, norms regarding maintenance of minimum net-worth, deposit and such other norms as required to be complied. In case, any person fails to meet the requirement then admission of such member will be terminated.

Withdrawal of Membership

BASL can withdraw the membership of an IA after granting the membership is only allowed if the registration granted by SEBI is cancelled or surrendered or expired. In any other case, BASL membership cannot be withdrawn.

With BASL coming into effect, all the IAs are required to comply with the regulations of SEBI and comply with the byelaws, notifications, guidelines and other communications issued by BASL from time to time. One can opine that IAs will be monitored by the authorities who would be more vigilant, thereby the compliance by IAs to be strictly followed.

Disclaimer: The views, comments and opinions expressed herein are my personal views and opinions and do not necessarily reflect the official policy and position of any other agency, organization, employer, or company. Assumptions made in the analysis are not of the position of any entity other than me. I make no representations as to accuracy, completeness, correctness, suitability, or validity of any information and will not be liable for any errors, omissions or damages arising from its use. It is reader’s responsibility to verify their own facts.


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Category LAW, Other Articles by - CA SUDHINDRA D S  



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