Registering as an Investment Advisor (IA) with the Securities and Exchange Board of India (SEBI) is mandatory for individuals or entities providing investment advisory services in India. SEBI regulates the activities of investment advisors to ensure investor protection, transparency, and professionalism in the financial advisory industry. Here’s an overview of the process and requirements for SEBI Investment Advisor registration:
Who Needs to Register as an Investment Advisor?
Any person or entity engaged in the business of providing investment advice or financial planning services to clients for a fee needs to register as an Investment Advisor with SEBI. This includes:
- Individuals: Independent financial advisors, wealth managers, financial planners, etc.
- Entities: Firms, companies, partnerships, or LLPs offering investment advisory services.
SEBI Investment Advisor Registration Process
1: Eligibility Criteria
- Educational Qualification: A professional qualification or graduate degree 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 or other financial services as may be specified from a university or an institution 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;]
- Persons associated with investment advice shall, at all times, have a minimum qualification of graduate degree in any discipline from a university or institution recognized by the Central Government or any State Government or a recognized foreign university or institution
- Experience: Omitted by the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2024, w.e.f. 16-12-2024.
- Certification: NISM certification as specified by the Board from time to time shall be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirement
2: Application Preparation
- Form A: Prepare and submit Form A, which includes details about the applicant’s educational qualifications, work experience, infrastructure, and compliance infrastructure.
- Form B: Submit Form B, which includes details of the investment advisor’s service structure, fee structure, disclosures, and other relevant information.
3: Infrastructure Requirements
- Office Setup: Maintain adequate infrastructure, including an office space, computer systems, and internet connectivity.
- Compliance Officer: Appoint a qualified compliance officer responsible for ensuring adherence to SEBI regulations and guidelines.
4: Fit and Proper Criteria
- SEBI evaluates the applicant based on their qualifications, experience, integrity, and financial soundness to determine if they meet the “fit and proper” criteria for registration.
5: Fee Payment
- Pay the prescribed fee for registration as an Investment Advisor, as specified by SEBI.
6: Submission to SEBI
- Submit the completed application forms (Form A and Form B) along with supporting documents to SEBI through the online portal or designated intermediary.
Documents Required
- Educational certificates and qualifications.
- Experience certificates or testimonials.
- Infrastructure details (office setup, systems, etc.).
- Details of compliance officer.
- Service and fee structure documents.
- Any other documents as specified by SEBI.
Post-Registration Obligations
Once registered as an Investment Advisor with SEBI, the advisor must comply with ongoing regulatory obligations, including:
- Client Agreement: Enter into a written agreement with clients detailing services offered, fees charged, and terms of engagement.
- Disclosure Requirements: Provide disclosures to clients about conflicts of interest, fees, risks, and other relevant information.
- Record Keeping: Maintain records of client interactions, advice provided, and transactions executed.
- Compliance and Reporting: Ensure compliance with SEBI regulations, file periodic reports, and respond to SEBI queries or inspections as required.
SEBI Investment Advisor registration is a structured process designed to ensure that investment advisors meet regulatory standards and provide transparent, professional advice to clients. By registering with SEBI and adhering to regulatory requirements, investment advisors contribute to maintaining investor trust and confidence in the financial advisory industry in India. It’s essential for aspiring investment advisors to thoroughly understand SEBI’s eligibility criteria, registration process, and post-registration obligations to successfully navigate the registration process.
At Ujjwal Gupta & Co
We, at Ujjwal Gupta & Co, are dedicated to delivering personalized, high-quality solutions tailored to meet your financial and business needs. With our team of professionals and a client-first approach, we ensure that every challenge is met with expert guidance and strategic insight.
We are dedicated to ensuring your business’s success by providing best service practice available in the industry and that too at a cost effective pricing. Our team of experts is excited to work with you and provide the support you need to thrive in the Indian business landscape.
Our only motive is to create Value for Our Clients and accordingly, have a Client Value System at our Office.
So, let us help you navigate the complexities of finance and compliance, empowering you to focus on what matters most — growing your business. Get in touch today, and take the first step towards financial peace of mind.
An Investment Advisor (IA) is a person or entity registered with SEBI to provide advice related to investing in securities or financial products. They help clients make informed decisions and charge fees for their advisory services.
Yes, under the SEBI (Investment Advisors) Regulations, 2013, registration with SEBI is mandatory for anyone providing investment advice professionally or receiving compensation for such services.
To register as an Investment Advisor, an individual or entity must:
- Have a postgraduate degree, graduate degree, or professional qualification (like CA, CFA, CFP, or equivalent).
- Possess relevant work experience in financial services or advisory.
- Meet the net worth requirements (₹5 lakhs for individuals and ₹50 lakhs for entities).
- Be of sound reputation and integrity.
- Have aleast 5 years of relevant experience in activities relating to advice on securities market or portfolio management.
Key documents include:
- Proof of educational qualifications and certifications (like NISM Investment Advisor Certification).
- Proof of work experience in investment advisory or financial services.
- Net worth certificate issued by a Chartered Accountant.
- PAN, Aadhaar, and other KYC documents.
- Business plan and organizational structure (for entities).
The application process involves:
- Submitting Form A along with required documents on SEBI’s online portal.
- Paying the application fee.
- SEBI reviews the application and may ask for clarifications or additional details.
- Upon approval, the applicant receives the certificate of registration.
SEBI registration for Investment Advisors is valid for lifetime, provided the advisor complies with all SEBI regulations and pays the required renewal fees annually.
Post-registration, Investment Advisors must:
- Obtain and maintain NISM Series-XA and XB certifications.
- Maintain proper records of client interactions and advice for at least 5 years.
- Avoid conflicts of interest by ensuring transparency in advisory and distribution activities.
- Adhere to the Code of Conduct under SEBI regulations.
- Disclose risks and fees associated with financial products to clients.
The fees include:
- Application fee: ₹5,000 (individuals) / ₹25,000 (entities).
- Registration fee: ₹10,000 (individuals) / ₹1,00,000 (entities).
No, SEBI prohibits registered Investment Advisors from earning commissions or selling financial products. They must charge clients directly for their advisory services and avoid any conflict of interest.
Non-compliance can result in:
- Cancellation or suspension of the registration certificate.
- Monetary penalties or fines.
- Restriction or prohibition from providing investment advisory services.
- Legal action for fraudulent practices or conflict of interest violations.
Why Choose UGC?
Client Centric Approach
Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.
Team Work
We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, social and ethnic backgrounds. We believe diversification plays a vital role in motivating the team.
Quick Turnaround
We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.
Open Communications
We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery. We provide professional services to our clients.
Client Value System
We value for the Client time and thus, we offer services that are value for money. Quality professional services are provided to our clients, so that they are able to achieve their desired results. We are a quality trademark in the industry and thus, our clients count on us always.
Quality in Delivering Work
Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.
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