SEBI Investment Adviser Registration is the most important thing for a financial advisor and it is mandatory for any advisory company. SEBI stands for Securities Exchange Board of India which regulates the stock market in India. For Indian citizens, SEBI Investment Adviser Registration is mandatory, if they are going to offer online investment advice to their clients, who may be residing anywhere in India or elsewhere.
Investment advisers registered with SEBI are allow to offer their services through various media including internet, telephone, newspaper and other print media, television, radio and any other electronic medium. This is a great opportunity for the investment adviser to expand his/her business and reach more customers across India or abroad.
SEBI Investment Adviser Registration
SEBI (Investment Advisers) Regulations, 2013 mandate every investment adviser to get register with SEBI. There is a provision for exemption from registration for any individual who advises less than fifteen clients. Hence, if you are an advisor and do not want to register with SEBI, you should have less than fifteen clients.
The fact that you advise your friends and family members also counts towards the client limit of 15. If you have more than fifteen clients and if you have been acting as an investment adviser, then you need to be register with SEBI.
There are certain conditions under which even if you have less than fifteen clients, SEBI can ask you to register yourself as an investment adviser:
- If the SEBI feels that the interests of the investors are not protect, then it can direct even those advisors who have less than 15 clients to get themselves registered.
- If an unregistered investment adviser has committed fraud or has indulged in unfair trade practices, then the SEBI may direct him to get registered with SEBI or wind up his business operations.
Who can Apply for “SEBI Registered Investment Advisor”
Any person who is an individual and a citizen of India, can apply for registration as an Investment Advisor.
- In case the applicant is an individual, then he is require to meet the following criteria’s:
- The applicant must be a graduate in any stream from a recognized university or institute.
- The applicant must have passed any of the following certification examinations conducted by NISM – Investment Adviser (Level 1) Certification Examination / Mutual Fund Foundation Certification Examination / Securities Market Foundation Certification Examination / Derivatives Foundation Certification Examination / Investment Adviser (Level 2) Certification Examination / SEBI Registered Investment Adviser (Category I) Certification Examination.
In case the applicant is a company, partnership firm or limited liability partnership, then they are require to meet the following criteria’s:
- The directors, partners and designated employees of such entities should be graduates in any stream from a recognized university or institute.
- The directors, partners and designated employees of such entities should have passed any of the following certification examinations conducted by NISM – Investment Adviser (Level 1) Certification Examination / Mutual Fund Foundation Certification Examination / Securities Market Foundation Certification Examination / Derivatives Foundation Certification Examination / Investment Adviser (Level 2) Certification Examination / SEBI Registered Investment Adviser (Category I) Certification Examination.
Qualification and Certification Requirement for “SEBI Registered Investment Advisor”
- A Graduate or Post-Graduate in any discipline from a University recognized by the Government of India.
- A Pass in NISM / NCFM exam relevant to the area of Advisory activity.
- A minimum of three years’ experience in Investment Advisory service in the preceding five years
