In September 2020, SEBI introduced the first set of amendments to its regulatory framework for investment advisors. While the amendments are a step towards protecting retail investors, the technology neutrality of the regulations remains doubtful.
A predominantly younger Indian demographic has recently made a shift towards using investment distribution and advisory mobile applications for equity investments. Such apps are becoming popular as they provide faster, easier and less expensive approach to investments. Automated tools used typically do not have any human intervention, as investment advice is based on a predefined algorithm, which customises investment plans for each customer platform.
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Article by Sidharrth Shankar & Aman Bhatia
Sidharrth (Sid) is a seasoned corporate lawyer and also the co-chair of the corporate practice with a core focus on private equity and mergers & acquisitions. Sid has substantial experience advising global private equity funds, multinational corporations and strategic investors on complex cross-border transactions across a broad spectrum of industries over the last two and a half decades, with over two decades in JSA itself.