An investment adviser is defined by the Securities and Exchange Board of India as an individual or a firm that is in the business of giving advice about securities. Although, an RIA is the actual firm, while the employees of the firm are called Investment Adviser Representatives (IARs).
Under the securities and exchange board of India (Investment advisors) regulation of 2013 investment advisor means any person who for consideration, is engaged in the business of providing investment advice to a client or other persons or group of persons and includes any person who holds out himself as an investment adviser, by whatever name called. He is any person or group that makes investment recommendations or conducts securities analysis in return for a fee. They are also referred to as financial advisors. Will help you register as an investment adviser.
Certain persons such as insurance agents, pension advisors, stockbrokers, mutual fund distributors, fund managers, advocates, law firms, etc are exempted from the investment advisor definition.
“Investment advice” is 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 the investment advice for the purpose of IA regulations doesn’t include investment advice given through newspaper, magazines, any electronic or broadcasting or telecommunications medium widely available to the public. But, one who make public appearance or make recommendations or offer an opinion concerning securities or public offers through public media while making recommendations through FAQs on SEBI (Investment Advisers) Regulations, 2013 to public media, are required to comply with the relevant provisions of SEBI (Research Analysts) Regulations, 2014.
Personal cannot act as an investment adviser unless he has obtained a certificate of registration from the Securities and Exchange Board of India (SEBI). No person can act as an advisor without obtaining a proper certificate, If any person is found to be engaged in providing investment advisory services without getting registered with SEBI, appropriate actions as deemed fit may be initiated under the Act of 1992.