If you are providing Investment Advisory Services in India, you must be registered as an Investment Advisor with the Securities and Exchange Board of India (SEBI ) as per SEBI ( Investment Advisors) Regulations, 2013, Investment Advisors regulations provides that no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the SEBI in accordance with SEBI Investment Advisors Regulations “SEBI Registered Investment Advisor”.
Also, no person, while dealing in the distribution of securities, shall use the nomenclature “Independent Financial Advisor, IFA or Wealth Adviser or any other similar name” unless registered with the SEBI as Investment Adviser
What Is Investment Advice
Means advice relating to investing in, purchasing, selling, or otherwise dealing in securities or investment products, and advice on investment portfolio containing securities or investment products, whether written, oral, or through any other means of communication for the benefit of the client and shall include financial planning
Provided that investment advice given through newspaper, magazines, any electronic or broadcasting or telecommunications medium, which is widely available to the public shall not be considered as investment advice for the purpose of these regulations
Who is Investment Advisor
Any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes any person who holds out himself as an investment adviser, by whatever name called
Who can Apply for “SEBI Registered Investment Advisor”
- Individual
- Partnership Firm
- LLP
- Company
Qualification and Certification Requirement for “SEBI Registered Investment Advisor”
- A professional qualification or post-graduate degree or post graduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or aninstitution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or a professional qualification by completing a Post Graduate Program in the Securities Market (Investment Advisory)from NISM of a duration not less than one year or a professional qualification by obtaining a CFA Charter from the CFA Institute
- An experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management
- Persons associated with investment advice shall meet the following minimum qualifications, at all times -(i) a professional qualification as provided in clause (a) of sub-regulation (1) of regulation 7; and(ii) an experience of atleast two years in activities relating to advice in financial products or securities or fund or asset or portfolio management
- An individualinvestment adviseror principal officer of a non-individual investment adviser, registered under these regulations and persons associated with investment advice shall have, at all times a certification on financial planning or fund or asset or portfolio management or investment advisory services-(a)from NISM; or(b)from any other organization or institution including Financial Planning Standards BoardofIndia or any recognized stock exchange in India provided such certification is accredited by NISM:Provided that fresh certification must be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements
Networth Requirement for SEBI Investment Advisors Registration “SEBI Registered Investment Advisor”
| Category | Networth |
| Individual | 5 Lakh |
| Non-Individual | 50 Lakh |
Meaning of Networth :
This means the aggregate value of paid-up share capital plus free reserves (excluding reserves created out of revaluation) is reduced by the aggregate value of accumulated losses, deferred expenditure not written off, including miscellaneous expenses not written off ( Applicable in Case of Company)
Fee for SEBI Investment Advisors Registration “SEBI Registered Investment Advisor”
Application fee
| Individuals and firms | Rs. 2000 |
For Body Corporate including Limited Liability Partnerships | Rs. 10000 |
Registration fee
| For individuals and firms | Rs. 3000 |
| For body Corporate including Limited Liability Partnerships | Rs. 15000 |