New Delhi, Feb. 12 -- The Securities and Exchange Board of India (Sebi) on Wednesday floated a consultation paper, proposing changes to the rules regarding advance fees charged by investment advisers (IAs) and research analysts (RAs).

The market regulator's proposal seeks to reassess the period for which these professionals can collect advance fees from their clients, with the possibility of extending it to a maximum of one year.

Under the current regulations, which were amended in 2020 and 2024, IAs can charge fees for a period not exceeding two quarters (six months), while RAs are limited to one quarter (three months). These provisions, introduced to protect investors, ensure that clients are not locked into a long-term contract with ...