Eligibility Criteria: To Become a SEBI-Registered Investment Advisor in India
To become a SEBI-registered Investment Advisor (IA) in India, you must meet specific eligibility criteria outlined under the SEBI (Investment Advisers) Regulations, 2013, along with subsequent amendments, including those proposed in SEBI’s consultation paper dated August 6, 2024.
1. Educational Qualification
Minimum Requirement: A graduate degree in any discipline is required. Previously, a postgraduate degree or professional qualification (e.g., CA, CFA, CS, or equivalent) was mandatory, but SEBI has relaxed this to encourage more entrants into the profession.
Preferred Fields: While a graduate degree in any field qualifies, degrees in finance, accountancy, business management, commerce, economics, capital markets, banking, insurance, or actuarial science are particularly relevant and align with the role’s demands.
2. Certification
You must obtain certifications from the National Institute of Securities Markets (NISM):
NISM-Series-X-A: Investment Adviser (Level 1): Covers foundational knowledge of financial planning, securities markets, and investment products.
NISM-Series-X-B: Investment Adviser (Level 2): Focuses on advanced advisory skills and compliance.
Alternatively, certifications accredited by NISM, such as those from the Financial Planning Standards Board India (FPSB), may also be accepted.
These certifications must be renewed before expiry to maintain registration, though SEBI has proposed that subsequent certifications focus only on regulatory updates rather than requiring the full base certification again.
3. Experience
Current Requirement: No minimum experience is required as of the latest relaxations proposed by SEBI in 2024. Previously, a minimum of 5 years of experience in financial services (e.g., advisory, securities, fund management) was mandatory, but this has been removed to lower entry barriers.
4. Net Worth or Deposit
Previous Requirement: Individuals needed a minimum net worth of ₹5 lakh, and non-individuals (e.g., firms, LLPs, companies) required ₹50 lakh.
Updated Proposal: SEBI has proposed replacing the net worth requirement with a refundable deposit system to ease financial burdens, especially for those with loans (e.g., housing loans). The deposit amount ranges from ₹1 lakh to ₹10 lakh, depending on the number of clients:
₹1 lakh for fewer clients, scaling up to ₹10 lakh for larger client bases.
This deposit is lien-marked to a recognized stock exchange and can be used to settle disputes.
5. Infrastructure
Applicants must have adequate infrastructure to provide advisory services, including:
Office space.
Equipment (e.g., computers, communication tools).
Research capabilities (e.g., market research software).
A declaration confirming this infrastructure is required during the application process.
6. Fit and Proper Person Criteria
The applicant (individual or principal officers of a non-individual entity) must be deemed “fit and proper” under Schedule II of the SEBI (Intermediaries) Regulations, 2008. This includes:
Financial integrity (e.g., no defaults or insolvency).
Good reputation and character.
No convictions or pending legal proceedings that question competence or integrity.
A clean CIBIL score and submission of income tax returns for the last three years may also be reviewed.
7. Additional Requirements
For Non-Individuals: Companies, LLPs, or partnership firms must designate a principal officer who meets the educational and certification criteria. The entity must also comply with the deposit requirement.
Foreign Entities or Citizens: Must establish a subsidiary or office in India to apply for registration.
Banks/NBFCs: Require RBI approval and must operate advisory services through a separate subsidiary or identifiable division.
Application Process Overview
Initial Application: Submit Form A via the SEBI Intermediary Portal with a non-refundable fee of ₹2,000 (individuals/firms) or ₹10,000 (body corporates).
Documents: Include self-certified copies of identity proof, address proof, educational qualifications, NISM certificates, infrastructure declaration, and a business plan.
Approval and Fees: Upon approval, pay registration fees of ₹3,000 (individuals) or ₹15,000 (non-individuals), plus BSE Administration and Supervision Limited (BASL) fees (e.g., ₹6,000 + GST for individuals).
Registration: SEBI issues a certificate valid for 5 years, renewable 3 months before expiry.
Notes on Recent Changes
SEBI’s 2024 consultation paper aims to simplify entry by reducing educational, experience, and financial hurdles, reflecting the need for more IAs to serve India’s growing investor base (currently only ~961 registered IAs as of mid-2024).
Proposals like part-time IAs (up to 75 clients) and relaxed compliance are under consideration but not yet formalized as of March 31, 2025.
These criteria ensure that only qualified individuals or entities can offer investment advice, protecting investors while fostering growth in the advisory profession. For the most current details, always refer to the latest SEBI circulars or the SEBI website, as regulations may evolve.
To become a SEBI-registered investment advisor in India, you must meet the following eligibility criteria:
Eligibility Criteria
Qualification
Postgraduate Degree or Professional Qualification: You need a postgraduate degree or a professional qualification such as CFA, CA, CS, ICWA, or an equivalent in fields like finance, accountancy, business management, economics, commerce, stock market, insurance, banking, or actuarial science from a recognized university.
Graduate Degree: As per recent amendments, a graduate degree may also be considered for registration from December 2024.
Experience
Experience Requirement: Historically, at least five years of experience in activities related to financial products, securities, funds, assets, or portfolio management was required. However, this requirement has been removed as per recent amendments.
Certification
NISM Certifications: You must pass the NISM-Series-X-A: Investment Adviser (Level 1) and NISM-Series-X-B: Investment Adviser (Level 2) certification exams.
Net Worth
Individual Advisors: A minimum net worth of ₹5 lakhs in tangible assets is required.
Non-Individual Advisors: The net worth should not exceed ₹50 lakhs, calculated as paid-up share capital plus free reserves.
Infrastructure
Adequate infrastructure, including office space, equipment, and market research software, is necessary to provide robust investment advisory services.
Registration Process
Application Submission: Submit Form A to SEBI along with necessary documents and an application fee.
Online Application: Complete the online application as per SEBI guidelines.
Registration Fee: Pay the registration fee after approval.
Registration Fees
Individual Application Fee: ₹2,000 (non-refundable).
Individual Registration Fee: ₹3,000 (payable after approval).
Non-Individual Application Fee: ₹10,000.
Non-Individual Registration Fee: ₹15,000
To become a SEBI-registered Investment Adviser (IA) in India as of April 2025, you must meet the following eligibility criteria:
Educational Qualifications:
A graduate degree in any discipline from a recognized university or institution.
Certification Requirements:
Obtain the following certifications from the National Institute of Securities Markets (NISM):
NISM-Series-X-A: Investment Adviser (Level 1)
NISM-Series-X-B: Investment Adviser (Level 2)
Experience:
While specific experience requirements have been relaxed, relevant experience in fields related to financial products, securities, fund management, asset management, or portfolio management is advantageous.
Net Worth Requirements:
For individual applicants: A minimum net worth of ₹5 lakh.
For non-individual applicants (such as companies or partnership firms): A minimum net worth of ₹50 lakh.
Additional Requirements:
Fit and Proper Criteria: Applicants must meet the ‘fit and proper’ criteria as specified by SEBI, ensuring they possess a clean regulatory record and the necessary integrity to act as an Investment Adviser.
Compliance with SEBI Regulations: Adherence to the SEBI (Investment Advisers) Regulations, 2013, and any subsequent amendments is mandatory.
It’s important to note that regulatory requirements can evolve. Therefore, it’s advisable to consult the latest SEBI notifications or seek professional guidance to ensure compliance with the current criteria.
To become a SEBI-Registered Investment Advisor (RIA) in India, you need to meet certain eligibility criteria as laid down by the Securities and Exchange Board of India (SEBI) under the SEBI (Investment Advisers) Regulations, 2013, as amended from time to time.
1. Educational Qualification:
You need to hold a professional qualification or a postgraduate degree or a graduate degree in any discipline.
Additionally, you must possess a postgraduate diploma or graduate diploma in fields such as finance, accountancy, business management, commerce, economics, capital markets, banking, insurance, or actuarial science.
OR
If you possess a graduate degree in any discipline, you must also pass the certification examinations as specified by SEBI from time to time. Currently, this includes:
NISM Series-XA: Investment Adviser (Level 1) Certification Examination
NISM Series-XB: Investment Adviser (Level 2) Certification Examination
2. Experience:
While earlier regulations required a minimum of five years of experience in activities related to the financial services industry, such as financial planning, investment advisory services, or research, recent amendments have removed this requirement, particularly for individuals meeting the educational and certification criteria mentioned above.
3. Certification:
Completion of the NISM Series-XA and NISM Series-XB certification examinations is mandatory for individuals applying for registration as an Investment Advisor.
4. Net Worth:
For individuals: You need to have a minimum net worth of ₹5 lakh. This needs to be certified by a Chartered Accountant.
For non-individuals (e.g., firms, companies, LLPs): The minimum net worth requirement is ₹50 lakh. This requirement may vary based on the number of clients as per recent updates. For instance, for up to 150 clients, it could be ₹1 lakh, and it increases with the client base.
5. Other Requirements:
Age: While not explicitly stated in all sources, some indicate a minimum age of 21 years.
CIBIL Score: A clean CIBIL score is generally required, indicating good financial standing.
Income Tax Returns: Submission of income tax returns for the last three years is usually necessary.
Infrastructure: You need to have adequate infrastructure to effectively provide investment advisory services.
Fit and Proper Person: You must be a fit and proper person as per the criteria specified by SEBI, which includes having no prior convictions for any economic offense or violation of securities laws.
Segregation of Services: Individuals registered as Investment Advisors are generally prohibited from offering distribution or execution services to their clients to avoid conflicts of interest.
Part-time Investment Advisors: If you intend to register as a part-time Investment Advisor, there might be restrictions on the number of clients you can serve (e.g., a limit of 75 clients as per some recent guidelines), and you need to disclose your part-time status to clients.
Key Points to Note:
The regulations are subject to change, so it’s crucial to refer to the latest official notifications and guidelines issued by SEBI.
The registration process is online through the SEBI Intermediary Portal.
After obtaining SEBI registration, you may also need to register with a recognized stock exchange like BSE.
It is recommended to consult the official SEBI website (www.sebi.gov.in) and the SEBI (Investment Advisers) Regulations, 2013, as amended, for the most accurate and up-to-date information.
