{"id":29545,"date":"2020-03-11T18:05:12","date_gmt":"2020-03-11T12:35:12","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=29545"},"modified":"2020-03-11T18:21:55","modified_gmt":"2020-03-11T12:51:55","slug":"investment-advisor-registration-with-sebi-step-by-step-guide","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/investment-advisor-registration-with-sebi-step-by-step-guide\/","title":{"rendered":"Investment Advisor Registration with SEBI: Step by Step Guide"},"content":{"rendered":"<p class=\"has-drop-cap\"><em>An investment advisor also known as a stockbroker is any person or group that makes investment recommendations and conducts securities analysis in exchange for a fee through direct management of clients&rsquo; assets or by way of written publications, as explained in Investment Advisors Act, 1940<\/em>. Securities and Exchange Board of India (SEBI) introduced Investment Adviser Regulations in 2013 that segregate the commission from selling advice on investment. According to this regulation to work as an investment advisor, an individual must first register himself with SEBI; also the registered person cannot receive remuneration or compensation from any person other than his\/her client is advised.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is an Investment Advisor?<\/h2>\n\n\n\n<p>The investment advisor is also known as &ldquo;<strong>financial advisor<\/strong>&rdquo; and alternatively can be spelt as &ldquo;investment adviser&rdquo; or financial adviser.&rdquo; The Investment advisor performs their duty as professionals within the financial industry by giving guidance to the clients in exchange for fees. The clients&rsquo; interests must be preferred by the investment advisors, as they owe a fiduciary duty towards them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is a Registered Investment Advisor?<\/h2>\n\n\n\n<p>A Registered Investment Advisor is basically a person or a firm who advises high net worth individuals on their investments and also manages their portfolios. The fundamental obligation of registered investment advisor is to provide investment advice that acts on the best interest of their clients&rsquo;. <em>The <a href=\"https:\/\/enterslice.com\/investment-advisors-registration-with-sebi\">investment advisor registration process<\/a> must be done with the Securities and Exchange Commission&rsquo;s (SEC) or State Securities Administrators<\/em>. A registered investment advisor gets paid like mutual fund managers. They usually earn their revenue through a management fee which is comprised of percentage assets held for a client. Their fees fluctuate, but the average is around 1%. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Eligibility for Investment Advisor Registration with SEBI<\/h2>\n\n\n\n<p>An individual to get\ninvestment advisor registration must have the following minimum qualifications:<\/p>\n\n\n\n<ul><li>The individual should have a professional qualification, post-graduate degree, postgraduate diploma in finance, business management, accountancy, commerce, capital <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a>, economics, banking, insurance or actuarial science from a university or an institution which must be recognised by the central or any state government or any foreign university or institution. <\/li><li>In case the investment advisor does not have the minimum qualification then must be a graduate in any discipline having at least five years of experience in activities relating to advice in financial products.<\/li><li>In addition, investment advisor should have certification on financial planning, fund, asset or portfolio management or investment advisory services either from NISM or from any other organisation or institution. Financial Planning Standards Board India or any recognised stock exchange in India provided such certification is accredited by National Institute of Securities Markets (<strong><a href=\"https:\/\/www.nism.ac.in\/\">NISM<\/a><\/strong>).<\/li><li>The existing investment advisors seeking registration under these regulations should ensure their partners and any representatives obtain certification within a time frame of two years from the date of commencement of these regulations, and it should be renewed before the expiry.<\/li><li><em>The investment advisors who are corporate bodies must have a minimum net worth of Rs. 25 lakh<\/em>.<\/li><li><em>The individuals or partnership firms should have net tangible assets worth not less than Rs. I lakh<\/em>.<\/li><li><em>The certificate of registration granted as per SEBI regulations remains valid for a period of five years from the date of its issuance<\/em>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are the Documents Required for Investment Advisor Registration with\nSEBI?<\/h2>\n\n\n\n<p><strong><em>The following are the documents required for getting investment advisor registration with SEBI:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"593\" height=\"455\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Untitled-1.png\" alt=\"documents required investment advisor registration with SEBI\" class=\"wp-image-29547\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Untitled-1.png 593w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Untitled-1-300x230.png 300w\" sizes=\"(max-width: 593px) 100vw, 593px\"\/><figcaption>Documents required investment advisor registration with SEBI<\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Fee Structure of Investment Advisor Registration with SEBI?<\/h2>\n\n\n\n<p><strong><em>The fee structure for investment advisor registration with SEBI is mentioned below:<\/em><\/strong><\/p>\n\n\n\n<ul><li><em>An individual or a partnership firm needs to pay an application fee of Rs. 5,000.<\/em><\/li><li><em>A body corporate or Limited Liability firm (LLP) must pay a fee of Rs. 25,000.<\/em><\/li><li><em>After receiving approval from SEBI for grant of certificate of registration, an individual or partnership firm must pay the registration fee of Rs. 10,000.<\/em><\/li><li><em>After getting approval from SEBI, a body corporate or limited liability partnership firm will have to pay a basic registration fee of Rs. 5 lakhs.<\/em><\/li><li><em>SEBI after receiving registration fee will grant investment advisor registration certificate.<\/em><\/li><\/ul>\n\n\n\n<div class=\"form-blog-2\">\n\n<h2>Investment Advisors registration with SEBI<\/h2>\n\n<p>Application filling before<span class=\"text-orange\"><strong><\/strong><\/span><\/p>\n<p>Business Case Analysis<span class=\"text-orange\"><strong><\/strong><\/span><\/p>\n<p>End to end follow-up with SEBI<span class=\"text-orange\"><strong><\/strong><\/span><\/p>\n\n<a class=\"btn-callback-blog input-tr-blog mt-3\" href=\"https:\/\/enterslice.com\/investment-advisors-registration-with-sebi\" target=\"_blank\" rel=\"noopener noreferrer\">Learn More<\/a>\n\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Process of Investment Advisor Registration with SEBI Offline\nMode?<\/h2>\n\n\n\n<p>The application form must be submitted at the SEBI Head office at Mumbai or at the regional or local office which is nearest to the place of residence.<\/p>\n\n\n\n<p><strong><em>SEBI&rsquo;S Regional office is located in:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Eastern\nRegional Office at Kolkata<\/li><li>&nbsp;Northern Regional Office at Delhi<\/li><li>Southern\nRegional Office at Chennai <\/li><li>Western\nRegional Office-II at Ahmedabad. <\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><i>SEBI has opened nine local offices at Bengaluru, Bhubaneshwar, Guwahati, Hyderabad, Indore, Jaipur, Kochi, Lucknow and Patna.<\/i><\/div>\n\n\n\n<p><strong><em>The procedure for investment advisor registration with SEBI is as follows:<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1<\/h3>\n\n\n\n<p>The applicant for grant Investment Advisor registration\nunder SEBI (Investment Advisers) Regulations, 2013 must make an application to\nSEBI in Form A as provided in the Regulations along with all the necessary\nsupporting documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2<\/h3>\n\n\n\n<p>Generally, after receipt of the application for\ninvestment advisor registration, the applicant will receive a reply from SEBI\nwithin one month.<\/p>\n\n\n\n<p>However, the time taken for the registration process to complete depends on how the applicant fulfils all the registration requirements, including the information provided. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3<\/h3>\n\n\n\n<p>The applicant must go through the SEBI (Investment\nAdvisers) Regulations, 2013 to check whether they fulfil the eligibility\ncriteria and such other details which may help in speeding the registration\nprocess.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4<\/h3>\n\n\n\n<p><strong><em>The applicant should mention the following in the cover letter: <\/em><\/strong><\/p>\n\n\n\n<ol><li>If\nthe applicant is providing investment advisory services before SEBI (Investment\nAdvisers) Regulations, 2013. If yes, they need to provide details.<\/li><li>Details\nof the investment advice which was provided prior to the application.<\/li><li>This\napplication is for registration of new investment advisory services<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5<\/h3>\n\n\n\n<p><strong><em>The applicant will along with the form submit the following:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Appropriately\nfilled Form A, which must be duly signed and stamped.<\/li><li>An\napplication fees of Rs. 5,000 in the form of a bank draft made in favour of\n&ldquo;The Securities and Exchange Board of India&rdquo;, payable at Mumbai.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What is the Process of Investment Advisor Registration with SEBI Online\nMode?<\/h3>\n\n\n\n<p>The following are the steps in the application process\nfor investment advisor registration with SEBI in online mode:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1<\/h3>\n\n\n\n<p>Visit the SEBI intermediary portal of SEBI <a href=\"https:\/\/siportal.sebi.gov.in\/intermediary\/index.html\">https:\/\/siportal.sebi.gov.in\/intermediary\/index.html<\/a>\nand click on self Registration menu. Complete the application form by filling\nall the details and then click on proceed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2<\/h3>\n\n\n\n<p>Click the online payment\nmode and then proceed to make payment either through internet banking or debit\ncard.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3<\/h3>\n\n\n\n<p>The applicant, after completion of the application and after making payment, will receive an acknowledgement mail along with login id and password.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4<\/h3>\n\n\n\n<p>An intermediary login id\nattached with activation link will be sent to the applicant within a few days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5<\/h3>\n\n\n\n<p>Submission of the application must be completed within 14 days of the receipt of mail. In case of failure to apply within the 14 days, the self-registration will expire, and the application fee will not be refunded. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Grant of Certificate after Investment Advisor Registration<\/h3>\n\n\n\n<ul><li>SEBI shall consider all the requirements specified in the Regulations for the purpose of grant of registration.<\/li><li>If SEBI is satisfied that the applicant fulfils all the requirements will approve the applicant and information regarding the same, on receipt of payment of registration fees, grant certificate of registration subject to the terms and conditions as the board may deem fit and appropriate.<\/li><li>On receipt of approval from SEBI, the applicant, if it is a body corporate, must pay registration fee of Rs.1,00,000 and Rs. 10,000 in case of the individual.<\/li><li>The registration fee must be made in favour of The Securities and Exchange Board of India.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Post-Registration Compliance for Investment Advisors?<\/h2>\n\n\n\n<ul><li>After\nregistration process is complete, the Investment Advisor must comply with the\nreporting requirements as specified by SEBI.<\/li><li>The\ninvestment advisor must regularly check the SEBI website for any updation or\ncirculars or guidelines issued from SEBI.<\/li><li>In\ncase of any material change in details already furnished with SEBI, the\ninvestment advisor needs to intimate the SEBI within a reasonable period of\ntime.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">SEBI Bans Investment Advisors from Providing Free Trial of Services<\/h2>\n\n\n\n<ul><li><em>Effective\nfrom January 1, 2020, the Securities and Exchange Board of India (SEBI) announced\nnew measures to enhance the conduct of registered investment advisors<\/em>.<\/li><li>&nbsp;As per the\ncircular issued by SEBI, the registered investment advisors (RIAs) are banned\nfrom giving free trials of services to their customers or accepting part\npayments for in exchange for their services. <\/li><li>Moreover, SEBI also said that registered investment\nadvisors can only provide advice after conducting risk profiling of clients.\nRegistered Investment Advisors must display complaints against them on their\nown websites and can only accept payments through banking channels.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Contact Enterslice<\/h2>\n\n\n\n<p>Enterslice provides end\nto end services to its client. An applicant seeking to get investment advisor\nregistration with SEBI may contact us to get their work done in a hassle-free\nmanner.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>In India, we pay fees to lawyers, doctors, etc. for\ntheir advice, but somehow we are not used to paying fees or charges to\nInvestment Advisors. This is either because we are unaware of the indirect fee\nstructure which we are paying till this date and thought it to be a free\nservice or we are happy with the advice given to us by our friends and family. When it comes\nto lifetime savings and financial goals, getting professional investment advice\nwith minor fees is a wise decision. The investment advisors registered with\nSEBI shall understand the investor&rsquo;s risk profile and their investment goals\nbefore giving any investment advice. <\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/fpi-registration-sebi-introduces-common-application-form\/\" target=\"_blank\" rel=\"noopener noreferrer\">FPI Registration: SEBI Introduces Common Application Form<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>An investment advisor also known as a stockbroker is any person or group that makes investment recommendations and conducts securities analysis in exchange for a fee through direct management of clients&rsquo; assets or by way of written publications, as explained in Investment Advisors Act, 1940. Securities and Exchange Board of India (SEBI) introduced Investment Adviser [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":29548,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1599],"tags":[],"acf":{"service_id":"227"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Investment Advisor Registration with SEBI: A Comperhensive Guide<\/title>\n<meta name=\"description\" content=\"The investment advisor registration process must be done with the Securities and Exchange Commission\u2019s (SEC) or State Securities Administrators.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/investment-advisor-registration-with-sebi-step-by-step-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Investment Advisor Registration with SEBI: A Comperhensive Guide\" \/>\n<meta property=\"og:description\" content=\"The investment advisor registration process must be done with the Securities and Exchange Commission\u2019s (SEC) or State Securities Administrators.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/investment-advisor-registration-with-sebi-step-by-step-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-11T12:35:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-11T12:51:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Investment-Advisor-Registration-with-SEBI-Step-by-Step-Guide.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Deepti Shikha","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/Deepti-Shikha.jpg","authorDescription":"Deepti is a Law graduate with an avid interest in reading and very proficient in summarizing legal cases. She has enough experience in handling legal affairs of the company. In the initial days of her career, she has worked as a legal researcher and has 3+ years of experience.","postViews":683,"readingTime":6,"nextPost":{"id":29557,"slug":"msme-ministry-launched-national-level-awareness-program-2020-detailed"},"prevPost":{"id":29531,"slug":"how-to-start-a-pharmacy-business-in-india"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Investment-Advisor-Registration-with-SEBI-Step-by-Step-Guide.jpg","postTerms":"SEBI Registration","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/29545"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=29545"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/29545\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/29548"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=29545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=29545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=29545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}