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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Key Regulations

Under the SEBI (Investment Advisers) Regulations, 2013, an investment adviser is required to do which of the following with respect to client records?

An investment adviser must retain records of advice, risk profiling and client agreements for the period prescribed by the regulations and make them available to SEBI for inspection. Destroying records, sharing them for marketing or relying on verbal records would breach record-keeping and confidentiality obligations.

  1. AMaintain records of advice, risk profiling and agreements for the period specified by the regulations and make them available for inspectionCorrect
  2. BDestroy client risk profile documents once the advice is delivered
  3. CShare the client's records with product issuers for marketing
  4. DKeep records only in verbal form to protect confidentiality

Explanation

Advisers must maintain documentation such as risk profile, suitability, agreement and advice rendered for the prescribed period and produce it to SEBI on inspection. Destroying, sharing for marketing, or keeping verbal records contradicts record-keeping and confidentiality duties.

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