Financial Year 2021-2022
| Sr. No. | Regulation details | Findings | Suggestions |
| 1. | Regulation 7 (1) | The Investment Adviser has a graduate degree and experience of atleast 5 years in activities related to advice. However, the Investment Adviser does not have a professional qualification or a post graduate degree or diploma in finance
accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science.
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The Investment Adviser is advised to enroll for a 2-year course to get
a professional qualification or post-graduate degree or post graduate diploma as per requirements of Regulation 7(1) of the IA regulations.
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| 2. | Regulation 13(b) | The address mentioned on the Website of the Investment Adviser is different from the address already mentioned to SEBI. However, the Investment Adviser has not informed SEBI about the same. | Change in address is a material change and the same has to be informed to SEBI. The Investment Adviser is advised to do the needful. |
| 3. | Regulation 15(8) | The Investment Adviser is not registered with CKYC registry. | It is advised that the application for registration with CKYC registry should be made. |
| 4. | Clause 2(iii)(A) | The Investment Adviser has not demonstrated AUA with supporting documents like unit statements, etc. as required under SEBI circular SEBI/HO/IMD/DF1/CIR/
P/2020/182 dated September 23, 2020 |
The Investment Adviser need to obtain from the clients supporting documents like demat statement, unit statements etc. to demonstrate AuA. |
| 5. | Regulation 18(1) | The Investment Adviser has not disclosed all material information about itself including its business, disciplinary history, the terms and conditions on which it offers advisory services and such other information as is necessary to the clients.
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The Investment Adviser is advised to add the said disclosure in the agreements with the clients. |
| 6. | Regulation 18(4) | The Investment adviser has not disclosed to the client its holding or position in the financial products or securities which are subject matter of advice
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The Investment Adviser is advised to add the said disclosure in the emails or reports shared with the client for investment advice. |
| 7. | Regulation 18(6) | The Investment adviser has not ensured adequate disclosures of all material facts relating to the key features of the products or securities, particularly, performance track record. | The Investment Adviser is advised to add the said disclosure in the emails or reports shared with the client for investment advice. |
| 8. | Regulation 19(1) | The Investment Adviser has not maintained records of suitability assessment and rationales in case of some clients. Also, all the rationales are not signed.
The agreement with the client is accepted by OTP and not signed by the client. |
The Investment Adviser is advised to maintain the records as required under the Regulation 19(1). Also, the agreement has to be signed and not accepted by OTP. |
| 9. | Clause 2(ix) | The Investment Adviser has not displayed information on printed or electronic materials, know your client forms, client agreements and other correspondences with the clients as required under Clause 2(ix) of the SEBI circular SEBI/HO/IMD/DF1/CIR/
P/2020/182 dated September 23, 2020 |
The Investment Adviser is advised to display the said information on all correspondence with clients including all electronic documents. |
