SEBI has now asked BSE and the to supervise investment advisors (IA). The regulator said the exchanges should form a wholly owned subsidiary to administer and supervise IAs.
Stock exchanges with minimum net worth of ₹200 crore, having nation-wide terminals, investor grievance redressal mechanism will supervise IAs. Most wealth managers are registered as IAs.
SEBI-registered IAs are advisors who generally charge fees directly instead of indirect fees for selling anyone's financial market products. Supervision of IAs should include both on-site and off-site.