The short
- What changed: RAs and IAs can now meet deposit norms using Liquid/Overnight mutual fund units under lien (earlier, bank FDs only).
- Why it matters: Cuts cash drag, keeps compliance assets low-risk and liquid, and simplifies treasury operations.
- Action window: Existing entities should align deposits and lien documentation before quarter-end audits.
- Good practice: Monthly NAV reconciliations and maker–checker approvals for any lien movement.
Deposit slabs (reference)
| Category | Client count | Deposit (₹) | Notes |
|---|---|---|---|
| Research Analyst (RA) | Up to 150 | 1,00,000 | Verify the exact slab against your registration and latest master circular. |
| RA | 151–300 | 2,00,000 | |
| RA | 301–1,000 | 5,00,000 | |
| RA | 1,001+ | 10,00,000 | |
| Investment Adviser (IA) | Per IA norms | As specified | MF lien route permitted in addition to bank FDs. |
Lien setup — step by step
- Select a Liquid/Overnight scheme with high-credit portfolio and minimal duration.
- Open folio in the entity’s legal name and execute a lien in favour of the supervisory body (RAASB/IAASB or as specified).
- Obtain lien confirmation from AMC/RTA and store in your compliance vault.
- Schedule monthly NAV recon and set a top-up trigger if valuation falls below the slab.
- Define a break-glass protocol for lien release, with board and compliance approvals.
Cyber & ops hygiene
Controls
- Two-person approval for any lien change (maker–checker).
- Enable AMC/RTA SMS and email alerts for lien or mandate edits.
- Quarterly confirmation from AMC/RTA and your supervisory body.
Disclosures
- Publish the deposit method on your website and in client kits.
- Explain segregation from client assets and the shortfall top-up SLA.
FAQs
- Can I split between FD and MF? Yes—if the total meets the slab and all pieces are properly lien-marked.
- What if I cross a slab mid-year? Step up the deposit promptly and minute the change in compliance records.