Capital markets regulator Sebi on Friday said investment advisers operating in International Financial Services Centre (IFSC) are required to have a net worth of $7,00,000 (around Rs 5.05 crore). Earlier, the net worth requirement for investment adviser (IA) in IFSC was $1.5 million.
The regulator in January came out with guidelines for entities operating as investment advisers in IFSC and said that any recognised entity desirous of operating in IFSC as an IA, may form a company or LLP (limited liability partnership) to provide investment advisory services.
Issuing clarifications on the guidelines, Sebi on Friday said "it is clarified that existing recognised entities in IFSC can also apply for IA registration without forming a separate company or LLP."
The clarifications have been issued by the Securities and Exchange Board of India after receiving representation from the stakeholders, the markets watchdog said in a circular.Currently, Gujarat International Finance Tec-City (GIFT) is the lone IFSC in the country.