Are you the one who can manage own portfolios and make right investment decisions? Are you among those to whom many of your relatives or may be friends call up to get advice on their portfolios but you couldn’t just because you are not registered as Investment Advisor.

So, if you are thinking of assisting people for making proper investment decisions you need to get yourself registered with SEBI as an Investment Advisor. The process of registration as Investment advisor is completely online and transparent

Questions you encounter once you decide to act as an Investment Advisor

A. Who is Investment Advisor ?

As per SEBI IA regulation

“INVESTMENT ADVISER” means any person-

­¤ who for consideration,

¤ is engaged in the business of providing investment advice to clients or other persons or group of persons and includes any person who holds out himself as an investment adviser, by whatever name called.

Which means Investment Adviser is person who identify investment opportunities available to his clients by understanding the financial situation, risk tolerance and investment goals and makes investment recommendations and advice in return of fees. Many as times they are also referred to as “Financial Advisors.”

B. Who can apply?

Both Individual and Non-Individual can apply for the said certificate, provided they should meet the eligibility and certification criteria defined under Regulation 7 of SEBI (Investment Advisors) Regulation, 2013

Unlike Individual applicant, in the case of non-Individual there is a separate individual person who will act as Principal Officer also the non-individual applicant can appoint persons who are associated with Investment Advice who will be responsible to give advice to the clients on behalf of the applicant non- individual. However, these principal Officer and the Person Associated with Investment Advice needs to comply with the eligibility and certification criteria.

C. Who is not required to get the mandatory registration under the Investment Advisor regulations?

So instead speaking about who is mandatorily required to get registered, below link contains those activities for which registration as Investment Adviser are not mandatory as per the SEBI Investment Advisor Regulation:

http://csmeghakyal.in/2022/11/28/exemptions-to-ia-registration

D. Who is Principal Officer ?

As mentioned earlier on behalf of every Non-Individual applicant a principal officer are authorised to advice its clients. He/she shall be the Managing Director or designated director or managing partner or executive chairman or equivalent management body of the Company/ LLP. In case of  Individual applicant, the individual shall act as the Principal officer

E. Are you ELIGIBLE to get registered as Investment Advisor?   Let’s find out..

F. Capital Adequacy/ Net-worth

An Individual or Non- Individual Applicant needs to have and maintain below mentioned Net worth at all the times:

¤ For Individual Capacity: – Net worth of not less than five Lakh rupees.

¤ For Non-Individual Capacity- Net worth not less than fifty lakh rupees.

H. Application fees for Registration as Investment Advisor

At the time of filing the application, you need to pay the non-refundable application fee and once your registration is approved, you need to pay the Registration Fee for securing the registration and getting the printed certificate from BASL and SEBI.

IA fees valid for 5 years

BASL Annual Membership Fee Structure valid for 3 years

*Plus 18% GST on above amount.

I. Process for application of Investment Adviser License

Referring to the Circular No. 20210618-01 dated June 18, 2021 and 20210621-01 dated June 21, 2021, issued by BASL, the desirous person is first required to make the registration with BASL (BSE Administration & Supervision Ltd.) and once the same is approved registration by BASL, the same shall be forwarded by them to SEBI for approval. Post completion of registration from BASL and SEBI. The applicant shall receive two registration certificates from SEBI and BASL respectively.

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Disclaimer: The views and opinions expressed herein are my personal views and opinions and do not necessarily reflect the official policy and position of any other agency, organization, employer, or company. Assumptions made in the analysis are not of the position of any entity other than me. I make no representations as to the accuracy, completeness, correctness, suitability, or validity of any information and will not be liable for any errors, omissions, or damages arising from its use. It is the reader’s responsibility to verify their own facts