{"id":6777,"date":"2021-07-12T06:25:41","date_gmt":"2021-07-12T06:25:41","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=6777"},"modified":"2021-07-12T10:13:43","modified_gmt":"2021-07-12T10:13:43","slug":"investment-advisor-registration-with-sebi","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/","title":{"rendered":"Investment Advisor Registration with SEBI &#8211; A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">An investment advisor is also known as a stockbroker. A stockbroker is an individual or a group that makes investment suggestions and conducts securities examination in exchange for a fee via direct management of customers&#8217; assets or by a method of written publications, as mentioned in <strong><em>Investment Advisors Act, 1940<\/em><\/strong>. Securities and Exchange Board of India announced Investment Adviser Regulations in the year 2013 that isolate the commission from selling recommendations on investment. As per the Investment Adviser Regulations, a person should register himself first with SEBI; also, the registered person cannot receive compensation from any individual other than their customer is advised. Scroll down to check the process of Investment Advisor Registration with SEBI.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a6275d341f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a6275d341f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/#Who_is_an_Investment_Advisor\" title=\"Who is\nan Investment Advisor?\">Who is\nan Investment Advisor?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/#Registered_Investment_Advisor_%E2%80%93_Overview\" title=\"Registered\nInvestment Advisor \u2013 Overview\">Registered\nInvestment Advisor \u2013 Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/#What_is_the_Eligibility_Criteria_for_Investment_Advisor_Registration_with_SEBI\" title=\"What is the Eligibility Criteria for Investment Advisor Registration with SEBI?\">What is the Eligibility Criteria for Investment Advisor Registration with SEBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/#Documents_Required_for_Investment_Advisor_Registration_with_SEBI\" title=\"Documents Required for Investment Advisor Registration with SEBI\">Documents Required for Investment Advisor Registration with SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/#Procedure_for_Investment_Advisor_Registration_with_SEBI_%E2%80%93_Offline_or_Online_Mode\" title=\"Procedure\nfor Investment Advisor Registration with SEBI \u2013 Offline or Online Mode\">Procedure\nfor Investment Advisor Registration with SEBI \u2013 Offline or Online Mode<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/investment-advisor-registration-with-sebi\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_an_Investment_Advisor\"><\/span>Who is\nan Investment Advisor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\nis also known as &#8220;Financial Advisor&#8221; and alternatively can be spelt\nas a financial advisor or investment advisor. The investment advisor executes\ntheir duties as professionals within the financial industry by giving guidance\nto the customers in exchange for fees. The interests of customers should be\npreferred by the investment advisors, as they owe a fiduciary duty towards\nthem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registered_Investment_Advisor_%E2%80%93_Overview\"><\/span>Registered\nInvestment Advisor \u2013 Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nRegistered Investment Advisor is usually an individual or a firm who advises\nhigh net-worth individuals on their investments &amp; also manages their\nportfolios. The primary obligation of a registered investment advisor is to\noffer investment advice that acts in the best interest of their customers. The\nprocedure of Investment Advisor Registration with SEBI should be done with the\nSEC (Securities and Exchange Commission) or State Securities Administrators. An\nincorporated investment advisor gets paid like mutual fund managers. They\ngenerally earn their revenue via a management fee which is comprised of percentage\nassets held for a customer. Their fees vary, but the average is around 1%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Eligibility_Criteria_for_Investment_Advisor_Registration_with_SEBI\"><\/span>What is the Eligibility Criteria for Investment Advisor Registration with SEBI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nperson to get Investment Advisor Registration with SEBI should have the\nfollowing minimum qualifications:<\/p>\n\n\n\n<ol><li>An individual should have a PG\ndegree, Business Management, Capital Market, Economics, Professional\nQualification, Accountancy, Commerce, banking, insurance or actuary science\nfrom a university or an institution that should be known by the Central\/any\nState Government\/any Foreign University or Institution. <\/li><li>In case the investment advisor\ndoesn\u2019t have the minimum qualification, they should be graduated in any\ndiscipline having a minimum of five years of experience in activities\nconcerning advice in financial products.<\/li><li>Additionally, an investment\nadvisor must have certification or financial planning, asset, fund, or\nportfolio management or services of investment advisory either from NISM or\nfrom any other institution or organisation. Financial Planning Standards Board\nof India furnished such certification is recognised by <strong><em>NISM (National Institute of\nSecurities Markets)<\/em><\/strong>.<\/li><li>The present investment advisors\nlooking for Investment Advisor Registration with SEBI under these regulations\nshould ensure their representatives and partners get certification within 2\nyears from the commencement date of such rules and should be renewed before the\nlapse. <\/li><li>The investment advisors who are\nbusiness or company bodies must have at least Rs. 25 lakhs of net worth.<\/li><li>The partnership or firms or\nindividuals should have net tangible assets worth not less than Rs. 1 lakh.<\/li><li>The Registration Certificate\nissued as per the regulations of SEBI remains valid for five years from the\nissuance date.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Investment_Advisor_Registration_with_SEBI\"><\/span>Documents Required for Investment Advisor Registration with SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare vital documents required at the time of Investment Advisor Registration\nwith SEBI:<\/p>\n\n\n\n<ol><li>Identity Proof (Aadhar Card,\nPAN Card, Driving License, etc.);<\/li><li>Address Proof (Such as latest\nutility bills);<\/li><li>Submit any qualification proof\nsuch as Degree Certificates, NSIM exam Certificates of CFP Certificates;<\/li><li>In case of graduates, submit\nexperience certificate;<\/li><li>Submit a net worth certificate\nfrom CA (Minimum net worth necessity is rupees one lakh for partnership firm or\nindividuals;<\/li><li>CIBIL Score;<\/li><li>Net Worth Certificate from CA;<\/li><li>ITR (Income Tax Returns) for\nthe past three years;<\/li><li>Various Declarations.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Investment_Advisor_Registration_with_SEBI_%E2%80%93_Offline_or_Online_Mode\"><\/span>Procedure\nfor Investment Advisor Registration with SEBI \u2013 Offline or Online Mode<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li><strong><em>Offline Mode:<\/em><\/strong><\/li><\/ol>\n\n\n\n<p>The\napplication form for Investment Advisory Registration with SEBI should be\nsubmitted at the Head Office of SEBI in Mumbai or at the local office or\nregional office, which is closest to the residence place.<\/p>\n\n\n\n<p><strong>The Regional Office of SEBI is\nlocated in:<\/strong><\/p>\n\n\n\n<ul><li>Northern Regional Office at\nDelhi.<\/li><li>Western Regional Office-II at\nAhmadabad.<\/li><li>Eastern Regional Office at\nKolkata.<\/li><li>Southern Regional Office at\nChennai.<\/li><\/ul>\n\n\n\n<p>Now,\nSEBI has opened nine local offices at Guwahati, Hyderabad, Patna, Jaipur, Kochi,\nBengaluru, Bhubaneshwar, Lucknow, and Indore.<\/p>\n\n\n\n<p><strong>Following is the offline\nregistration process with SEBI:<\/strong><\/p>\n\n\n\n<p><strong>Step 1:<\/strong>\nThe candidate for grant Investment Advisor Registration under SEBI Regulations,\n2013 (Investment Advisers) should make an application to SEBI in Form A as\ngiven in the Regulations along with all vital documents.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong>\nUsually, after application receipt for Investment Advisor Registration, the\ncandidate will get a reply from SEBI within a month.<\/p>\n\n\n\n<p>But,\nthe time taken for the registration to finish depends on how the candidate\nsatisfies all registration necessities, consisting of the information provided.<\/p>\n\n\n\n<p><strong>Step 3:<\/strong>\nThe candidate should go via the SEBI (Investment Advisers) Regulations, 2013,\nto check whether they fulfil the criteria and other details which may aid in\nfasting the registration process.<\/p>\n\n\n\n<p><strong>Step 4:<\/strong>\nThe candidate should state the following in the cover letter:<\/p>\n\n\n\n<ul><li>If the candidate is providing\ninvestment advisory services before SEBI Regulations, 2013. If yes, they need\nto furnish details;<\/li><li>Investment advice details which\nwere provided prior to the application;<\/li><li>This application is for the\nregistration of new investment advisory services.<\/li><\/ul>\n\n\n\n<p><strong>Step 5:<\/strong>\nThe candidate, along with the form, have to submit the following:<\/p>\n\n\n\n<ul><li>Correctly filled Form A, which should be duly signed and stamped;<\/li><li>An application fee of Rs. 5000\/- in the form of a bank draft made in favour of \u201cThe Securities and Exchange Board of India\u201d payable at Mumbai.<\/li><\/ul>\n\n\n\n<p>2. <strong><em>Online Mode<\/em><\/strong>:<\/p>\n\n\n\n<p><strong>Step 1:<\/strong> Visit the official portal of <strong>SEBI<\/strong><sup><a href=\"https:\/\/www.sebi.gov.in\/\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> and click on the &#8220;Self Registration&#8221; menu. Complete the application form by filling in all the details and then click on proceed button.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong>\nClick on the Online Payment Mode and proceed further to make payment through a\ndebit card or internet banking.<\/p>\n\n\n\n<p><strong>Step 3:<\/strong>\nOnce the application is completed and making payment, the candidate will get an\nacknowledgement mail along with login id and password.<\/p>\n\n\n\n<p><strong>Step 4:<\/strong>\nA mediator login id attached with the activation link will be sent to the\ncandidate within dew days.<\/p>\n\n\n\n<p><strong>Step 5:<\/strong>\nApplication submission should be finished within 14 days of the mail receipt.\nIn case of any failure to apply within 14 days, the self-registration will\nexpire, and the application fee will not be refunded.<\/p>\n\n\n\n<p><strong>Issuance of Certificate after\nInvestment Advisor Registration with SEBI<\/strong><\/p>\n\n\n\n<ul><li>SEBI will consider all the\nnecessities specified in the Regulations for the purpose of issuance of the\nregistration.<\/li><li>If SEBI is pleased that the\ncandidate satisfies all the requirements, will consent the applicant and\ninformation concerning the same, on payment receipt of registration fees,\npermit certificate of registration subject to the terms &amp; conditions as the\nboard may deem fit and appropriate.<\/li><li>On the receipt of consent from\nSEBI, the candidate, if it is a corporate body, should pay a registration fee\nof Rs. 1,00,000 and Rs. 10,000 in the case of the individual.<\/li><li>The registration fee should be\nmade in favour of the Securities and Exchange Board of India (SEBI).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> In India, we pay fees to doctors, lawyers, etc., for their advice, but somehow we are not used to paying fees to charges to Investment Advisors. This is either because we are uninformed of the indirect fee structure which we are paying till this date and thought it to be a free service or we are pleased with the recommendations given to us by our friends and family. When it comes to life savings and financial purposes, getting expert advice with fewer fees is a good decision. The investment advisors incorporated with SEBI shall know the risk profile of the investor and their investment goals before giving any investment recommendation. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/investor-growth-platform-framework-and-10-other-issues-reviewed-by-sebi\/\">Investor Growth Platform Framework and 10 other issues reviewed by SEBI<\/a><\/mark><\/p>\n\n\n\n<p> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>An investment advisor is also known as a stockbroker. A stockbroker is an individual or a group that makes investment suggestions and conducts securities examination in exchange for a fee via direct management of customers&#8217; assets or by a method of written publications, as mentioned in Investment Advisors Act, 1940. Securities and Exchange Board of [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":6778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[64],"tags":[746],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6777"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=6777"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6777\/revisions"}],"predecessor-version":[{"id":6793,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6777\/revisions\/6793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/6778"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=6777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=6777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=6777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}