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

Under the SEBI (Investment Advisers) Regulations, 2013, which of the following is a correct statement about the investment adviser's agreement with a client?

The adviser must enter a written agreement with every client that sets out the services, fees, and the rights and obligations of both parties. No exemption exists based on client age, type or the amount invested.

  1. AA written agreement is mandatory only for clients investing above Rs 50 lakh
  2. BThe agreement is required only for non-individual clients
  3. CThe adviser must enter into a written agreement with the client setting out the terms, including fees and the adviser's and client's rights and obligationsCorrect
  4. DThe agreement may be oral if the client is a senior citizen

Explanation

Every investment adviser must have an agreement with each client, in the form prescribed, covering services, fees, and the rights and obligations of both parties. There are no exemptions based on client age, type or investment size.

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