Modification to the clause 7 of MITC relating to Advance fees

SEBI vide circular no. SEBI/HO/MIRSD/ MIRSD-PoD/P/CIR/2025/48 dated April 2, 2025, relaxed the provision of advance fee restrictions in case of Investment Adviser (IAs). Accordingly, the Exchange issued notice no.20250403-4 dated April 3, 2025.

The Most Important Terms and Conditions (MITC) for IAs inter alia mention that IAs may charge advance fees from clients and such advance shall not exceed the period stipulated by SEBI. The relevant clauses of MITC also mention the permissible period as two quarters for IAs.

In view of the revision in the maximum permissible period for charging advance fees by IAs (as per aforesaid SEBI circular), the IAs are hereby informed to make consequential changes to the clause 7 of MITC while communicating to their clients.

For and on behalf of BSE Ltd.

Meghana Kulkarni

Dy. General Manager Membership Operations & Membership Compliance

Neeky Subramaniam

Manager Membership Operations & Membership Compliance