How to Become a SEBI-Registered Investment Advisor in India

Anyone in India offering investment advice for consideration — whether as an individual, partnership, LLP or company — must register with the Securities and Exchange Board of India (SEBI) as an Investment Adviser. This includes fee-only financial planners, goal-based advisors, and anyone publishing model portfolios for clients in exchange for a fee.

Mutual fund distributors who only earn commissions and do not give "incidental" advice beyond their distribution activity are exempt. However, if you charge a separate advisory fee, RIA registration is mandatory.

• Minimum age of 21 years for individual applicants.
• "Fit and proper" person under Schedule II of SEBI (Intermediaries) Regulations, 2008.
• No previous SEBI debarment or pending enforcement action.
• For non-individuals: a corporate structure (LLP / Pvt Ltd) with at least one qualified principal officer and one qualified person for every 150 clients.

You must hold at least one of the following educational qualifications:

• Post-graduate degree or diploma (minimum 2 years) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science.
• Professional qualification: CA, CS, CMA, CFA, or equivalent.
• Graduate in any discipline with at least 5 years of experience in activities relating to advice in financial products or investment.

In addition, you must clear and maintain both NISM certifications:

• NISM Series X-A: Investment Adviser (Level 1)
• NISM Series X-B: Investment Adviser (Level 2)

Both must be renewed before they expire (validity is three years).

• Individual / Sole proprietor: Net tangible assets of at least ₹5 lakh. A CA-certified net worth certificate is required.
• Non-individual: Net worth of at least ₹50 lakh, certified by a chartered accountant.
• RIAs must also maintain a deposit with a scheduled commercial bank in line with the client-base-linked deposit framework SEBI introduced for investor protection.

1. Create an account on the SEBI Intermediary (SI) Portal at siportal.sebi.gov.in.
2. Fill Form A under the IA Regulations: applicant details, qualifications, NISM certificate numbers, net worth certificate, infrastructure and compliance setup.
3. Upload supporting documents: PAN, Aadhaar, degree certificates, NISM scorecards, experience proofs, office address proof, CA net worth certificate, and a declaration of fit-and-proper status.
4. Pay the non-refundable application fee online.
5. Respond to SEBI's queries — typically 1–3 rounds of clarifications.
6. On approval, pay the registration fee and receive your unique Registration Number in the format INA000XXXXXX.

End-to-end, the process typically takes 3–6 months depending on how clean your application is on first submission.

• Individual: ₹5,000 application fee · ₹10,000 registration fee · ₹5,000 every 5 years thereafter.
• Non-individual: ₹25,000 application fee · ₹5,00,000 registration fee · ₹5,00,000 every 5 years thereafter.

Fees are paid through the SI Portal. Always check the latest IA Regulations and SEBI circulars before paying, as the fee structure can change.

• Maintain a clear separation between advisory and distribution activities at the client family level.
• Execute a written agreement with every client before onboarding.
• Carry out documented risk profiling and suitability assessment for each client.
• Cap fees at the SEBI-prescribed limit (either AUA-linked or fixed-fee, with the ceiling SEBI specifies).
• Maintain records for at least 5 years (10 years for grievances).
• File the half-yearly compliance report and the annual audit report from a CA/CS/CMA confirming compliance with the IA Regulations.
• Display SEBI RIA registration details, BASL membership, complaint status, and standard disclosures on all client communication and your website.
• Be a member of the BSE Administration and Supervision Limited (BASL).
• Use only SEBI-permitted payment modes; never accept client funds in your own advisory account.

• Letting NISM X-A or X-B lapse — your registration is invalid without them.
• Using marketing language that implies guaranteed returns.
• Mixing advisory and distribution income from the same client family.
• Skipping the written agreement or the risk profiling step.
• Forgetting to file the half-yearly compliance certificate.