Demat Account Log In Will Not Work Without Two Factor Authentication From 1st October

Holders of demat accounts may not be able to log in to their accounts if they do not enable two-factor authentication by 30 September 2022, according...

more

KYC Deadline for Demat Accounts Extended

The Securities and Exchange Board of India (SEBI) has extended the deadline for establishing existing demat and trading accounts KYC-compliant to 30...

more

Joint bank account not mandatory for spouse pension

All banks disbursing central government pension have been advised that in case the spouse (family pensioner) opts for the existing joint bank account...

more

SEBI Issues Operating Norms for Silver Exchange Traded Funds

Market regulator Securities and Exchange Board of India (SEBI) has notified amendments to the MF Regulations for a regulatory mechanism on Silver...

more

RBI May Approach Government For Tax Sops for Retail Direct Scheme Investments

The Reserve Bank of India (RBI) is likely to approach the Centre to secure tax benefits for retail investments in sovereign securities (government...

more

Crypto May be Permitted as Asset, Not as Currency

While the government is unlikely to ban cryptocurrencies, it may take a cautious approach towards such investments, permitting them as assets instead...

more

SEBI releases investor charter, lays down dos and don'ts of investing in Indian securities market

Market regulator Securities and Exchange Board of India (SEBI) has released the investor charter for investors in securities market which aims at...

more

How Will The New ‘One Nation One Ombudsman’ Scheme of RBI Work

Investors will no longer have to chase different entities regulated by the Reserve Bank of India (RBI) in order to get their financial grievances...

more

Stock Exchanges to Rollout T+1 Settlement In Equities From 25th February

Stock exchanges said that they will introduce the T+1 settlement cycle for trading equity shares and other instruments in a phased manner, starting...

more

Users Can Now Get Aadhaar E-verification Done Offline; Revoke eKYC consent

People can now get their Aadhaar e-verification done offline by sharing a digitally-signed document generated by the Unique Identity Authority of...

more
  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
img
Debashis Basu
Founder