Investment Advisers
Aspiring Investment Advisers can leverage our end-to-end solutions to obtain SEBI Investment Adviser registration, from eligibility assessment and documentation to licensing and ongoing compliance.
Introduction & Regulatory Background
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The SEBI (Investment Advisers) Regulations, 2013 is the primary regulatory framework governing Investment Advisers (IAs) in India. These regulations ensure transparency, accountability and avoidance of conflicts of interest in the investment advice provided to clients.
Investment Advisers are also expected to comply with SEBI circulars, guidelines and any additional compliance requirements of stock exchanges or intermediaries where their advice may be disseminated.
Entity Requirement: An Investment Advisor can be: an individual, a partnership firm, a Limited Liability Company (LLP) or a Company.
Types of Investment Advisers Entities
Individual IA
Requirements:
Legal entity: Personal capacity.
Qualification: Graduate degree in any discipline (preferred in finance / commerce / economics) + NISM IA Certification (XA & XB)
Persons associated with investment advice: All employees/associates must hold relevant qualification + NISM IA Certification (XA & XB)
Full time IA limit: Must transition to non-individual entity if exceeding 300 clients or ₹3 crore fees
Part time IA limit: Max 75 clients.
Partnership Firm IA
Requirements:
Legal entity: Partnership firm (non-individual IA).
Qualification: Principal Officer (designated partner) must have Graduate degree + NISM IA Certification (XA & XB)
Persons associated with investment advice: All employees/associates must hold relevant qualification + NISM IA Certification (XA & XB)
Full time IA limit: No limit.
Part time IA limit: Max 75 clients.
Body Corporate / LLP IA
Requirements:
Legal entity: LLP/Company (non-individual IA).
Qualification: Principal Officer (Director/Partner/Managerial person) must have Graduate degree + NISM IA Certification (XA & XB)
Persons associated with research: All employees/associates must hold relevant qualification + NISM IA Certification (XA & XB)
Full time IA limit: No limit.
Part time IA limit: Not applicable.
Eligibility & Net Owned Fund
Deposit Requirement
The deposit requirement is client-based and applies uniformly across all IA entity types:
Up to 150 clients: ₹1 lakh
151-300 clients: ₹2 lakh
301-1,000 clients: ₹5 lakh
Above 1,000 clients: ₹10 lakh
Fit and Proper Criteria
Individual IA: Self (the individual) must fulfill SEBI's "fit and proper" criteria.
Partnership firm: The applicant and its key persons/partners must fulfill SEBI's "fit and proper" criteria.
Body corporate/LLP: Body Corporate/LLP: The applicant and its key persons/directors must fulfill SEBI's "fit and proper" criteria.
Website Compliance
All Investment Advisers - irrespective of entity type - must maintain a functional website with mandatory disclosures including:
Financial interests and compensation structures
Use of AI or algorithmic advice
Records and segregation of advisery/distribution activities
Step by Step Registration Process & Fee
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 1
Application
Individual IA: Apply online on SEBI Intermediary Portal (SI Portal) using Form A.
Partnership firm IA: Apply on SI Portal using Form A in the name of the partnership firm.
Body corporate/LLP IA: Apply on SI Portal using Form A in company/LLP name.
Step 2
Document Upload
Individual IA: Upload documents: PAN, Aadhaar, qualifications, NISM certificate, net worth proof, policies.
Partnership firm IA: Submit partnership deed, partner KYC, Principal Officer qualifications, NISM certificate.
Body corporate/LLP IA: Submit incorporation certificate MOA AOA LLP agreement board resolution compliances.
Step 3
Application Fee
Individual IA & partnership firm IA: Fee: ₹2,000.
Body corporate/LLP IA: Fee: ₹2,000.
Step 4
SEBI Review
SEBI reviews application and may raise queries requiring clarification or additional documentation.
Applicant must respond to SEBI queries within stipulated timelines.
Step 5
Registration Fee
Payment upon approval:
Individual IA & partnership firm IA: Fee: ₹3,000.
Body corporate/LLP IA: Fee: ₹15,000.
Step 6
Certification
Upon satisfactory review and registration fee payment, SEBI issues certificate.
Registration is valid and must be renewed periodically as per SEBI regulations.
Ongoing Fees (Post-Registration)
Individuals & partnership firms: ₹1,000
Body corporates / LLPs: ₹5,000
Individuals & partnership firms: ₹10,000 (₹2,000 per year)
Body corporates / LLPs: ₹5,00,000 (₹1,00,000 per year)
Individuals & partnership firms: ₹9,000 (₹1,800 per year)
Body corporates / LLPs: ₹4,95,000 (₹99,000 per year)
Key Compliance Requirements After Registration
Once registered, the following compliance requirements must be met:
Maintain comprehensive records of investment advice, analysis and communications with clients.
Ensure proper disclosure of financial interests and potential conflicts of interest to all clients.
Put in place a code of conduct as per SEBI IA regulations to guide ethical advisery practices.
Submit periodical reports or information as sought by SEBI within stipulated timelines.
Maintain segregation of advisery and distribution activities if operating in both capacities.
Update website regularly with mandatory disclosures and regulatory information.
Renew registration and pay renewal fees as per SEBI's prescribed schedule.
How SecMark Assists
Advising on eligibility, qualification and certification requirements for SEBI IA registration.
Assistance in preparing and filing the application with SEBI/BSE with accuracy and completeness.
Responding to queries from SEBI/BSE and obtaining the certificate of registration efficiently.
Assistance in drafting policies & procedures (conflict of interest policy, IA policy, compliance manual).
Setting up back-office systems for compliance, surveillance and reporting requirements.
Providing technology solutions including e-KYC, record keeping and compliance software.
