Archive / Investment Adviser (Level 1) / Key Regulations

nism-series-xa-iaasb-investment-adviser-supervisory-body[ INVESTMENT ADVISER (LEVEL 1) ]

Which recognized entity currently acts as the Investment Adviser Administration and Supervisory Body (IAASB) for administering and supervising registered Investment Advisers in India?

[ A ]National Bank for Agriculture and Rural Development (NABARD)

[ B ]Securities Appellate Tribunal (SAT)

[ C ]BSE Administration & Supervision Limited (BASL)[ CORRECT ]

[ D ]Insurance Regulatory and Development Authority of India (IRDAI)

Takeaway

BSE Administration & Supervision Limited (BASL), a wholly-owned subsidiary of BSE Limited, is the entity SEBI has recognized as the Investment Adviser Administration and Supervisory Body (IAASB) for Registered Investment Advisers.

Derivation

Rather than SEBI directly supervising every individual RIA itself, SEBI delegated day-to-day administrative and supervisory functions — onboarding verification, offsite/onsite inspections, monitoring compliance, and handling certain grievance escalations — to BASL under Regulation 14 of the SEBI (Investment Advisers) Regulations, creating a self-regulatory-style oversight layer specifically for the IA industry (distinct from stock exchanges' oversight of brokers, or AMFI's oversight of mutual fund distributors). Candidates are tested on correctly naming BASL as this specific delegated body, since the concept of SEBI delegating supervisory functions to a subsidiary of an existing exchange is a distinctive and easily-confused regulatory-architecture detail.

Why the others fail

A — National Bank for Agriculture and Rural Development (NABARD)

NABARD is a specialized development finance institution focused on agriculture and rural credit, entirely unrelated to supervising Investment Advisers under SEBI's regulatory framework.

B — Securities Appellate Tribunal (SAT)

The Securities Appellate Tribunal is a judicial body that hears appeals against SEBI orders; it is not the day-to-day administrative and supervisory body designated for Investment Advisers.

D — Insurance Regulatory and Development Authority of India (IRDAI)

IRDAI is the insurance sector's regulator, overseeing insurers and insurance intermediaries — it has no supervisory role over SEBI-registered Investment Advisers.