Regulatory updates
Circular changes that actually affect what you're required to do — sourced directly from the regulator, in reverse-chronological order.
SEBI extended how far in advance an IA can collect fees from individual/HUF clients to a full year (from one quarter). On early termination, the client is refunded the unexpired-period fee, minus a breakage fee the IA may retain of up to one quarter's fee.
Every Investment Advisory Agreement must now incorporate a standardized MITC block: the IA can only accept fee payments (never client funds/securities on their behalf), cannot execute trades without explicit per-trade consent, and fee is capped at ₹1,51,000/year (Fixed Fee mode) or 2.5% of Assets under Advice per year, for individual/HUF clients.
Non-individual Investment Advisers must obtain an annual auditor certificate confirming compliance with the Regulation 22 client-level segregation rule (a client can't take both advisory and distribution services from the same IA group) — due within 6 months of financial year-end, and folded into the existing compliance audit under Regulation 19(3), not a separate filing.
SEBI operationalized CeFCoM (Centralized Fee Collection Mechanism), a BSE-run portal letting clients pay advisory/research fees only to registered IAs through one closed, traceable channel — an optional alternative to direct bank transfer, meant to make it obvious when a payment is going to an unregistered entity.