The government said on Tuesday it has advised capital market regulator Securities and Exchange Board of India to make regulations for investment advisors.
The Sebi Act, 1992 requires investment advisors to be registered with the market regulator in accordance with the regulations made by it under the Act, Minister of State for Finance P K Bansal told Rajya Sabha in a written reply.
According to official sources, Sebi board is meeting tomorrow in Mumbai and is expected to consider the issue.
In reply to another query, the minister said small investors held about eight per cent of the market capitalisation of companies traded on Bombay Stock Exchange as on March 31 this year, while promoters and big investors approximately 92 per cent.
The market capitalisation of companies listed and traded on the exchange as on August 14 stood at $1,111 billion, Bansal said.
Small investors comprise individual shareholders under non-promoter category with holding up to Rs 100,000 of face value per company.
