Reply to SEBI on Consultation paper on Review of Regulatory Framework for Investment Advisers (IA)

Reply to SEBI on  30-Jun-2020

Name of the Entity/ Person: Atul Gandhi CommunicateAtul@Gmail.com 9371331337
Sl. No.	Proposal Page no para number	Suggestions	Rationale
1	Overall comment on regulation environment	I) Allow Indian entrepreneurs to do business. Over a period SEBI has created so much complex structure of regulations that SEBI itself is finding difficult to take call on SEBI’s own consultation paper issued in way back 2016. Create simplified, fair and transparent regulation / legal structure for securities business in India “Transparency” is the only way to rise for India i) Single law should be applicable to all Intermediaries and print-tv-online media whether Individual or non individual ii) Anyone talking about a stock (whether recommending buy or sales or not or just talk positively /negatively) should disclose present holding, purchases / sale in past one year and purchases / sale in next one year directly or through group company / subsidiary / related party	1) SEBI is institutionalizing securities market business. More people should be allowed to do business. Competition is always welcome. In telecom sector, prior to JIO data was selling at Rs 250 per GB, afterwords it come down Rs 3 per GB. Institutions are more concerned about their profit over investor. In down market institution continue to sell SIP. 2) If you create so much complex regulation environment, business owner will spend 20% or 30% of their time only on compliance not on business. Countries with simple legal background can flourish easily
2	3.4.4 page 11	Be realistic Along with option A & B, “profit share %” should be allowed. Fees should be fair and transparent No fixed fees restriction like Rs 75000	Not every client is willing to give fixed fees or fee on AUM, say IA advising client having investment of say 100 crore. Say in bull market client doable his investment money in a year. Now client is making 100 crore profit and SEBI is asking to charge fee of Just Rs 75,000 ??
3	3.5.2.3 page 15	Talent can be criteria to do business in India. Don’t put any net worth criteria to do business in India One lakh is good amount of net worth for individual IA and five lakh for non individual IA to do business. In India parents facilitate (provide shelter – home – pay fees) to their children for education, as well as help (money or allow use of their home or office) to children to do business so ,its preferred to include parents home, office and net worth along with IA net worth SEBI should charge nominal token fees of Rs 5000 towards IA registration for both Individual or Non Individual IA	1) India has population of over 100 crore. Even after 70 years political party still talks about removing poverty. Political parties has not removed poverty from India. Indian business people / entrepreneurs can overcome poverty. Being free nation people should be allowed to do business 2) Number of so called global business / big brands in todays world are started from small set up like garage back side of home or a flat. Entrepreneurship is welcome. SEBI has allowed only rich people / institution to do business in securities market. Money should not be criteria to do business 3) Those who got lots of money create business verticals / subsidiary / division. And those who have less money should not do business ? 4) Talent can be criteria to do business. Indian brands like Narendra Modi or Sachin Tendulkar or Lata Mangeshkar has not come from rich family background. What do you think had Indian cricket board said money is criteria to play cricket ?
4	3.5.2.6 page 16	People should have liberty to choose legal structure. Don’t put any legal restriction to do business	1) In era of whatsapp and facebook any one can have few thousand clients or few hundred crore AUM 2) People can choose legal structure to do business as per their convenience 3) Though TCS one of the early mover in software than Infosys, it got listed after few years of Infosys 4) Today, even after 100 + years in business Tata’s are holding companies under “Trust” legal structure 5) Allow entrepreneur to choose suitable legal structure 6) Create simple legal environment