Section 18 in Securities and Exchange Board of India (Investment Advisers) Regulations, 2013
18. Disclosures to clients.
(1)An investment adviser shall disclose to a prospective client, all material information about itself including its business, disciplinary history, the terms and conditions on which it offers advisory services, affiliations with other intermediaries and such other information as is necessary to take an informed decision on whether or not to avail its services.[***] [Omitted '(2) and (3)' by Notification No. SEBI/LAD-NRO/GN/2020/22, dated 3.7.2020 (w.e.f. 21.1.2013).](4)An investment adviser shall disclose to the client its holding or position, if any, in the financial products or securities which are subject matter of advice.(5)An investment adviser shall disclose to the client any actual or potential conflicts of interest arising from any connection to or association with any issuer of products/securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of investment advisory services.(6)An investment adviser shall, while making an investment advice, make adequate disclosure to the client of all material facts relating to the key features of the products or securities, particularly, performance track record.(7)An investment adviser shall draw the client's attention to the warnings, disclaimers in documents, advertising materials relating to an investment product which it is recommending to the client.
