On Monday, markets regulator SEBI revealed how investment advisory applications will work, requiring all new and existing applicants to carry out registration-related activities with BSE Administration and Supervision Limited (BASL).

Sebi approved BASL, a wholly-owned subsidiary of BSE, in June 2021 to act as the Investment Adviser Administration and Supervisory Body (IAASB) for three years.

Following the provisions of the Investment Advisers Rules, the management and supervision of the Investment Advisers (IA) have been entrusted to BASL. Considering this, Sebi said in a statement that all new IA applicants and existing IAs are required to conduct investment advisor-related registration and post-registration activities with BASL.

In addition, applicants may refer to the framework published by BASL on the revised process for seeking membership from BASL and registering from Sebi. According to the specification, BASL must monitor the IA on-site and off-site, correct customer and IA grievances, and take administrative action, including issuing warnings and submitting Sebi for enforcement action.

Furthermore, it needs to monitor the activities of the IA by obtaining periodic reports, submitting such reports to Sebi and maintaining a database.