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Registration of Investment Adviser - SEBI

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Securities and Exchange Board of India (SEBI) 

The Securities and Exchange Board of India (SEBI) is a statutory agency and market regulator that oversees India's securities market. Sebi's primary responsibilities include safeguarding the interests of securities investors as well as promoting and regulating the securities industry. Sebi is governed by a board of directors. A Chairman and several other full-time and part-time members make up the board. The union government appoints the chairman. Two members from the finance ministry, one from the Reserve Bank of India, and five more members have been nominated by the Centre. Sebi's headquarters are in Mumbai, while regional offices can be found in Ahmedabad, Kolkata, Chennai, and Delhi.

Before Sebi, the regulating authority was the Controller of Capital Issues, which had authority under the Capital Issues (Control) Act of 1947. The Securities and Exchange Board of India (Sebi) was established in 1988 to regulate India's financial markets. Sebi began as a non-statutory entity with no legislative authority. It was given autonomous and statutory powers with the passing of the Sebi Act by Parliament in 1992.

SEBI's Functions and Powers

Sebi regulates stock exchange activity, protects shareholders' rights, and ensures the safety of their investments. It also intends to combat fraud by harmonizing its legislative regulations and encouraging businesses to self-regulate. A competitive professional market for intermediaries is also enabled by the regulator.

Apart from the aforementioned tasks, Sebi provides a marketplace where issuers can appropriately raise funds. It also protects investor protection and the provision of exact and accurate information. The Securities and Exchange Commission (Sebi) examines stock transactions and protects the securities market against fraud. Stockbrokers and sub-stockbrokers are under its supervision. It gives investors with market education in order to improve their understanding.

Registration of Investment Adviser – SEBI

If you provide investment advisory services in India, you must register as an investment advisor with the Securities and Exchange Board of India (SEBI). According to the SEBI (Investment Advisors) Regulations, 2013, no person shall act as an investment adviser or hold himself out as an investment adviser unless he has obtained a certificate of registration from the SEBI.

Also, without registered with the SEBI as an Investment Adviser, no one may use the nomenclature "Independent Financial Advisor, IFA, Wealth Adviser, or any other similar moniker" when dealing in the distribution of securities.

Investment Advisor Registration

Investment Advice

Advice on investing in, purchasing, selling, or otherwise dealing in securities or investment products, as well as advice on an investment portfolio containing securities or investment products, whether written, oral, or through any other means of communication for the client's benefit, shall include financial planning.

Read Our Blog: Want to Register as Investment Advisor: A Must Read!

Investment advice supplied through newspapers, magazines, or any other generally available electronic, broadcasting, or telecommunications media must not be deemed investment advice for the purposes of these laws.

Investment Advisor

Any person who, for a fee, engages in the business of providing financial advice to customers or other individuals or groups of individuals, and includes anybody who poses as an investment adviser under any name.

Who is eligible to apply for the position of "SEBI Registered Investment Advisor?"

  • Individual
  • Partnership Firm
  • LLP
  • Company

"SEBI Registered Investment Advisor" Qualification and Certification Requirement

  • A professional qualification, 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 an institution recognized by the Central Government or any State Government, or a recognized foreign university, institution, or association, or a professional qualification by completing a Post Graduate Program in the Security Market (Investment Advisory) from NISM of a duration of minimum one year or a professional qualification by obtaining a CFA Charter from the CFA Institute.
  • At least five years of expertise in financial product or securities counseling, as well as fund, asset, or portfolio management.
  • At all times, persons associated with investment advice must have the following minimum qualifications: I a professional qualification as defined in clause (a) of sub-regulation (1) of regulation 7; and (ii) at least two years of experience in activities relating to financial products, securities, funds, assets, or portfolio management.
  • An individual investment adviser or the principal officer of a non-individual investment adviser registered under these regulations, as well as persons associated with investment advice, must have at all times a certification in financial planning, fund, asset, or portfolio management, or investment advisory services, either from NISM or from any other organization or institution, such as the Financial Planning Standards Board of India or any recognized stock exchange in India, provided s To ensure continuity in conformity with certification standards, new certification must be obtained before the validity of the present certification expires.

SEBI Investment Advisors Registration "SEBI Registered Investment Advisor" Networth Requirement

  • Individuals - 5 Lakh
  • Non-Individual - 50 Lakh

The Definition of Net Worth

This means that the whole value of paid-up share capital plus free reserves (excluding reserves acquired as a result of revaluation) is decreased by the total value of cumulative losses, postponed spending that has not been written off, and miscellaneous costs that have not been written off ( Applicable in Case of Company)

Registration Fee for SEBI Investment Advisors "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

Conclusion

Registered financial advisers can benefit from high pay, work schedule freedom, and control over their practice, in addition to feeling good about offering quality advice and building a strong financial foundation for their customers. Evaluating the benefits and drawbacks of this career can assist you in making an informed decision about whether or not this is the correct career for you.

A licensed financial advisor can assist you in ensuring that your personal finances are in order in addition to your business finances. These experts play a significant role in your business and personal life, and maintaining strong communication and teamwork will be critical to your long-term success. Always remember that the best financial counselors are those who have your best interests at heart. Similarly, you could contact reputed franchises like IIFL if you want to be optimistic about your future by becoming a financial advisor.

Investment Adviser

Start your consultancy business legally with the permissions from SEBI to act as a advisor for various investment strategies or products. We take care of all of the other documentation, follow up with both the government, and other legalities.

Alternative Investment Compliance

Its privately pooled investment vehicle approved by SEBI, on terms of providing the regular and annual records, register and reporting of its business activities in India as per its investment policy. Get hassle free advice and execution of various services required for it from us.

Investment Adviser Compliance

Registered person including entity whom so ever doing professional advices on investment product and strategies the return of investment fund under contract need to maintain records, contract and report periodically to the SEBI.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Author
Shamshad Alam
Experienced Digital Marketer with a demonstrated history of working in the internet industry. He likes to write about the latest technology trends, Skilled in Digital Marketing likes. Search Engine Optimization, SMO, SEM, PPC, Content Writing, and, Designing, etc.

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