FUNCTIONS OF IA
Functions of IA
Functions, obligations, duties, and responsibilities of the Investment Adviser (including principal officer and all persons associated with the investment advice) include the following, among others to discharge the Investment advisory services, subject to this agreement:
(a) Fiduciary duty
We shall act in a fiduciary capacity towards you, always and shall disclose all conflicts of interests as and when they arise.
(b) Restricted Consideration
We shall not receive any consideration by way of remuneration or compensation or in any other form from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided.
(c) Arms-Length activities
We shall maintain an arms-length relationship between our activities as an investment adviser and other activities.
(d) Segregation of IA services
We, in case of engaging in activities other than investment advisory services, as may be permitted by the Regulatory mandates, shall ensure that the investment advisory services are clearly segregated from all our other activities, in the manner as prescribed under the IA Regulations.
(e) Disclosure of conflict of interest
We shall ensure that in case of any conflict of interest of the investment advisory activities with other activities, such conflict of interest shall be disclosed to you.
(f) Non-disclosure of confidential information
We shall not divulge any confidential information about you, which has come to our knowledge, without taking your prior permission, except where such disclosures are required to be made in compliance with any law for the time being in force.
You hereby agree, acknowledge, consent and permit to the processing and use of your confidential information including personal data and financial data, by us including our third-party vendors, as far as it is necessary for the performance of our functions, obligations, and responsibilities, towards providing services, herein.
(g) Restricted Transactions contrary to advice given
We, the investment advisor shall not enter transactions on our own account which is contrary to our advice given to you for a period of fifteen days from the day of such advice.
Provided that during the period of such fifteen days, if we are of the opinion that the situation has changed, then we may enter into such a transaction on our own account after giving such revised assessment to you at least 24 hours in advance of entering into such transaction.
You agree that the advice given to you is subject to a specific set of factors including the client-profile, risk-profile, goals, market conditions and others, and such set of factors differ for different persons including us. Therefore, you agree to consent and permit that we may enter into transactions on our own account which may be contrary to our advice given to you. In case, you need any confirmation or clarification or have any objection in our such transactions or holding or position, you shall notify us immediately.
(h) KYC compliance
We, the investment advisor shall follow Know Your Client (‘KYC’) procedure as specified by the Board from time to time.
(i) Code of Conduct
We undertake to abide by Code of Conduct as specified in Third Schedule of the IA Regulations – contained as in Schedule.
(j) Restricted Transactions on own account
We shall not act on our own account, knowingly to sell securities or investment products to or purchase securities or investment product from a client.
(k) Prior approval for change in control
We shall take prior approval from the Board, in case of change in control of our entity.
(l) Submission of Information
We shall furnish to the Board, information and reports as may be specified by the Board from time to time.
(m) Compliance with Certification and Qualification requirements
We shall ensure compliance with the certification and qualification requirements as specified u/r 7 of IA Regulations, at all times.
These include the qualification and certification requirement for an individual investment adviser or principal officer of a non-individual investment adviser registered under the IA Regulations, as the case may be, and the persons associated with investment advice.
(n) Compliance with Regulatory mandates
We shall ensure compliance with the Regulatory mandates.
(o) Compliance with Eligibility criteria
We shall ensure compliance with the eligibility criteria as specified under the IA Regulations at all times.
(p) Risk profiling and suitability
We follow a set process of risk profiling, risk assessment and suitability analysis, as mandated u/r 16 and 17 of IA Regulations and other regulatory mandates, including your risk capacity and risk aversion.
(q) Reports to clients
We shall provide reports to my / our client on potential and current investments.
(r) Maintenance of records
We shall maintain the records, as specified u/r 19(1) of IA Regulations and related books of accounts including client accounts and data.
(s) Audit as per the IA Regulations
We shall conduct yearly audit u/r 19(3) of IA Regulations, in respect of compliance with the IA Regulations.