SEBI clarifies: no plans for regulatory oversight of family offices

In an official statement, the market regulator termed such reports as "factually incorrect" and confirmed that no such proposal is currently under examination.

"It has come to SEBI's attention that certain media reports have suggested that SEBI is considering regulatory oversight of family offices. These reports are factually incorrect. SEBI is not examining or pursuing this matter at present," said the market regulator.

On October 3, several media platforms reported that the market regulator is considering bringing family offices--private investment entities managing the wealth of ultra-high-net-worth families--under a regulatory framework.

A family office is a private wealth management firm that provides comprehensive financial and investment services to high-net-worth individuals or families.

Unlike traditional wealth managers, family offices offer a wide range of personalised services, including investment management, tax planning, estate planning, philanthropy, and sometimes even lifestyle and concierge services. Their primary goal is to preserve and grow family wealth across generations.

There are two main types of family offices: Single-Family Offices (SFOs), which serve one wealthy family exclusively, and Multi-Family Offices (MFOs), which cater to several families, offering shared services to reduce costs. In India, family offices have been gaining traction, especially among business families and startup founders, as they look for structured and professional management of their personal wealth.

A recent EY-Julius Baer report highlighted that while 25 per cent of Indian family offices continue to prioritise wealth preservation, many are now actively diversifying into global and alternative assets.

The report highlights a transformative shift in how India's ultra-high-net-worth families are diversifying and managing their wealth to grow and govern.(ANI)