Investment Advisor Registration with SEBI
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Step-by-Step Guide to Investment Advisor Registration with SEBI
According to the Investment Advisors Act of 1940, an investment advisor, also known as a stockbroker, is any person or group who makes investment recommendations and conducts securities analysis for a fee through direct management of clients’ assets or through written publications. The SEBI introduced in 2013 the Investment Adviser Regulations which separate commission from selling investment advisory. According to this regulation, in order to work as an investment advisor, an individual must first register with SEBI; additionally, the registered person may not receive remuneration or compensation from anyone other than his/her client.
This information has been updated with the Regulations (amendment) of Sebi (Investment Advisors) (2021).
SEBI Registry as an investment advisor is not an easy step. Many want to understand how to become a registered investment consultant?
This is a detailed step-by-step instruction for the application process under the SEBI Registered Investment Advisor Application Process (SEBI) Rules of Procedure for 2020. It will assist anyone who meets the prerequisites (see below) to apply for the SEBI Investment Advisor certification. We are a firm of Chartered Accountants, so if you want to register as an investment advisor as an Individual or Private Limited Company, contact our Consultants for assistance contact us (see below).
What Exactly Is a Registered Investment Advisor (RIA)?
The term “investment advisor” is often used to refer to a “financial advisor,” and it can also be spelled “investment adviser” or “financial adviser.” Investment advisors carry out their responsibilities as professionals in the financial industry by providing advice to clients in exchange for fees. Investment advisors must prioritize their clients’ interests because they have a fiduciary responsibility to them.
A Registered Investment Advisor is an individual or firm that advises high-net-worth individuals on their investments and manages their portfolios. The primary responsibility of a registered investment advisor is to provide investment advice that is in their clients’ best interests. The Securities and Exchange Commission (SEC) or state securities administrators must be contacted to complete the investment advisor registration process. A registered investment advisor is paid in the same way that mutual fund managers are. They normally make money by charging a management fee, which is based on a percentage of the assets they handle for a client. Their fees vary, but on average, they are about 1%.
Eligibility for SEBI Registration as an Investment Advisor

To become a registered investment advisor, a person must meet the following requirements:
- The candidate must possess a professional certificate, post-graduate degree, or postgraduate diploma in finance, business administration, accounting, commerce, capital markets, economics, banking, insurance, or actuarial science from a university or institution recognised by the federal or state governments, as well as any international university or institution.
- If the investment advisor lacks the minimum qualification, he or she must be a graduate in any discipline with at least five years of experience in activities relating to financial product advice.
- In addition, investment advisors should be certified by NISM or another organization or institution in financial planning, fund, asset, or portfolio management, or investment advisory services. Financial Planning Standards Board India or any other recognized stock exchange in India, whether the credential is approved by the National Institute of Securities Markets (NISM).
- Existing investment advisors seeking registration under these regulations must ensure that their partners and their representatives acquire certification within 2 years of the regulations’ effective date, and that certification is renewed before the expiration date.
- Investment advisors who work for corporations must have a net worth of at least Rs. 25 lakh.
- Individuals or partnership firms must have at least Rs. 1 lakh in net tangible assets.
- The certificate of registration issued in accordance with SEBI regulations is valid for five years from the date of issuance.
What are the required documents to register as an investment advisor with SEBI?
The following are the documents required to register as an investment advisor with SEBI:
- Identity proof
- Address proof
- Documentation of qualifications (Degree certificates, NISM exam certificates )
- In the case of graduates, a certificate of experience is required (e.g. Insurance agency license, MF ARN card, etc.)
- CIBIL Score
- A Chartered Accountant’s certificate of net worth (Minimum net worth requirement is rupees five lakh for individuals and Rs 50 Lacs For Non- Individual.)
- Income Tax Returns for the Previous Three Years
- A number of declarations.
What is the Fee Structure for SEBI Registration of Investment Advisers?
The following is the fee structure for SEBI registration of investment advisors:
- An application fee of Rs. 5,000 is required for an individual or a partnership firm.
- A fee of Rs. 25,000 must be paid by a body corporate or a Limited Liability Partnership (LLP).
- An individual or partnership firm must pay a registration fee of Rs. 10,000 after obtaining approval from SEBI for the grant of a certificate of registration.
- After receiving SEBI approval, a body corporate or limited liability partnership firm must pay a basic registration fee of Rs. 5 lakhs.
- After receiving the registration fee, SEBI will issue the investment advisor registration
What is the SEBI Offline Registration Process for Investment Advisor?

The application form must be sent to the SEBI Head Office in Mumbai, or to the regional or local office closest to the applicant’s address.
The Regional Office of SEBI is located in:
- Kolkata Eastern Regional Office.
- Delhi Regional Northern Office.
- Chennai Regional Southern Office.
- Ahmedabad Western Regional Office-II.
In Bengaluru, Bhubaneshwar, Guwahati, Hyderabad, Indore, Jaipur and Lucknow Patna, SEBI opened nine local offices.
The procedure for SEBI registration of investment advisors is as follows:
Step 1: The applicant for Investment Advisor registration under the SEBI (Investment Advisers) Regulations, 2013 shall submit an application to SEBI in Form A, along with all required documents.
Step 2: In most cases, the applicant will obtain a response from SEBI within one month of submitting an application for investment advisor registration.
The time it takes to complete the registration process, however, is determined by how well the applicant meets all of the registration criteria, including the details given.
Step 3: The applicant must review the SEBI (Investment Advisers) Regulations, 2013 to see whether they meet the eligibility requirements and any other information that can speed up the registration process.
Step 4: In the cover letter, the applicant must provide the following information:
- If the applicant provides investment advisory services prior to the implementation of the SEBI (Investment Advisers) Regulations, 2013. If they say yes, they must elaborate.
- Information about the investment advice provided prior to the application.
- This application is for new investment advisory services to be registered.
Step 5: Along with the application, the applicant must submit the following documents:
- Form A must be properly filled out and signed and stamped.
- An application fee of Rs. 5,000 must be paid in the form of a bank draught payable in Mumbai to “The Securities and Exchange Board of India.”
The following are the steps in the online application process for SEBI registration of investment advisors:
Step 1: Go to the SEBI intermediary portal and select the self-registration option. Fill out the application form to the best of your ability, and then press the “Continue” button.
Step 2: After selecting the online payment mode, proceed to make a payment using either internet banking or a debit card.
Step 3: After completing the application and making payment, the applicant will receive an acceptance email with a login id and password.
Step 4: Within a few days, the applicant will receive an intermediary login id along with an activation connection.
Step 5: The application must be sent within 14 days of receiving it in the mail. The self-registration will expire if you do not apply within 14 days, and the processing fee will not be refunded.
Certificate grant after registration of the investment advisor
- For the purpose of granting approval, SEBI will take into account all of the criteria outlined in the Regulations.
- If SEBI is satisfied that the applicant meets all of the criteria, it will accept the applicant and related details, and upon receipt of registration fees, it will issue a certificate of registration subject to the terms and conditions that the board deems fit and proper.
- If the applicant is a business, the registration fee is Rs. 1,00,000, and if the applicant is a person, the registration fee is Rs. 10,000.
- The registration fee must be paid to the Securities and Exchange Board of India (SEBI).
What is Investment Advisor Post-Registration Compliance?
- The Investment Advisor is required to meet the reporting requirements as set out in SEBI after the registration process is completed.
- Any updates, circulations or guidelines issued by SEBI shall be regularly monitored by an investment adviser on the SEBI website.
- In the event of any substantive modification of SEBI details the investment consultant is required to communicate the SEBI in due course.
SEBI prohibits the provision of Free Trial of Services by investment advisors.
- As of 1 January 2020, new measures for enhancing the conduct of registered investor advisors have been announced by the Securities and Exchange Board of Indeia (SEBI).
- According to the SEBI circular, registered investment advisors (RIAs) are prohibited from providing free trials of services to their customers or accepting partial payments in exchange for their services.
- Moreover, SEBI also stated that only after carrying out risk profiling for clients, registered investment advisors can provide advice. Registered investment consultants shall display their complaints on their own websites and can only accept payments via banking channels.
Good news for investment consultants began in 2021. The news is particularly beneficial for those who plan to apply for SEBI and for those consultant
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