Sun Advisory Services, a growing financial advisory firm, has recently expanded its client base by offering both full-time and part-time advisory services. The firm has started referring to some of its employees as "part

Sun Advisory Services, a growing financial advisory firm, has recently expanded its client base by offering both full-time and part-time advisory services. The firm has started referring to some of its employees as "part-time investment advisers" in its official communications and promotional materials. However, these advisers are handling a large number of clients and providing advisory services alongside other professional engagements. In addition to this, Sun Advisory Services has not clearly disclosed the limitations and scope of services offered by such part-time advisers to its clients. It also continues to onboard new clients without properly monitoring the number of clients being handled by each adviser. As a result, even some of the experienced part-time advisers are handling close to 100 clients. With the objectives of strengthening investor protection and improving transparency in the advisory ecosystem, the Securities and Exchange Board of India introduced the SEBI (Investment Advisers) (Second Amendment) Regulations, 2024. Therefore, these amendments brought significant changes, especially in the classification and functioning of investment advisers. However, the firm is planning to operates with ₹ 50 crore of net worth limit. As a result, in a recent regulatory review, questions are raised regarding whether Sun Advisory Services has complied with the amended provisions relating to the definition, scope, disclosure and operational limits of part-time investment advisers. Concerns are also expressed about investor protection and the clarity of communication maintained by the firm. Based on these scenarios, determine the legal position with respect to the provisions of the said Regulation on the below aspects: (i) Explain the concept of part-time investment adviser as introduced in the amended provisions of SEBI regulation. (ii) State the restrictions on the number of clients for a part-time investment adviser, (iii) Which SEBI Regulation(s) will be applicable to the Sun Advisory Services ? (iv) What is the limit of net worth requirement for Sun Advisory Services, as an investment adviser ? (v) State the provisions of compliance audit for Sun Advisory Services.