Overview of SEBI Registered Investment Advisors as per Investment Advisers Act, 1940

An Investment Adviser is any person/group who makes investments suggestions or conducts securities analysis in return for a fee, whether through direct management of clients’ assets or by way of written publications. Investment Advisers are also referred to as stockbrokers also. In India, individuals must clear Certification exams like NISM and CFA in order to become a qualified Investment Adviser and must compulsorily be registered with SEBI (Securities & Exchange Board of India). Also remember that the terms financial advisers and investment advisers can be used interchangeably.

For example, an registered Investment Adviser should ensure that their client’s transaction is given utmost priority and all suggestions/advice given to the client should be personalised as per their requirements & risk profile. Investment Advisers are mandated to avoid any type of scenarios that will result into conflicts of interest. An approach in which the adviser work towards restricting perceived or actual conflicts of interest, is by arranging their compensation. Advisers are paid a fee which is dependent on the cause of their success as linked with that of their client. This will ensure that the interest of the client is given utmost importance & other things are going to fall in place.

New Guidelines for Investment Adviser Registration in India

This year, SEBI has official announcement that from now onwards BSE (Bombay Stock Exchange) will handle all the registration for Investment Advisers/Research Analysts and it will work as a supervisory authority for Investment Advisers/Research Analysts. This recognition granted under Regulation 14 of the Research Analyst and Investment Advisers Regulations, permits BSE Ltd. To monitors the administration & management of both Investment Advisers (IAs) and Research Analysts (RAs). Also, this recognition is already started from July 25, 2024.

As part of its new roles & responsibilities, Bombay Stock Exchange has put in place a detailed framework that comprises of bye-laws, standard operating procedures & a set of FAQs. These documents are specially designed to guide & support Investment Advisers in adopting the Investment Adviser Administration & supervisory Body framework effectively.

Who is Eligible for Investment Adviser Registration in India?

In India, this registration is compulsory for any individual/entity that provides advisory services related to investments in securities or provides detailed analysis. As per SEBI’s Investment Advisers Regulation, 2013, anyone offering these services for a fee should be registered. And this requirement applies to:

• Individuals;
• Partnerships;
• LLP;
• Corporations;
• Other entities providing investment advice.

However, some professionals like CAs, Bankers, or Insurance Agents who provides incidental investment advice in the course of their main services are not required to register. But, if they choose to offer advisory services as an individual service they must register with SEBI.

Benefits of Investment Adviser Registration under SEBI

The following are the benefits of Investment Adviser Registration in India:

• Enhanced Credibility: It will boosts the reputation & credibility of Investment Adviser in the market, as it indicates that the adviser has met high standards of professional capability & ethical conduct.
• Various Business Opportunities: With this Registration, Investment Advisers can expand their services to include, financial planning, advisory services, and portfolio management, helping attract more clients effectively.
• Protection of Investor: SEBI provides a dispute resolution mechanism which helps to resolve conflicts of interest between clients & advisers, ensuring complete transparency in advisory relationships.
• Development: Advisers must stay informed with the latest market trends, industry regulations & investment strategies ensuring they are well-equipped to service clients effectively.

Eligibility and Qualifications Criteria for Investment Adviser Registration

To qualify for Investment Adviser Registration with SEBI, candidates must meet the following eligibility criteria:

• Experience: At least 5 years of relevant experience investment, finance or related fields.
• Net Worth: A minimum of net worth of Rs. 1 lakh for individuals & Rs. 25 lakhs for non-individuals.
• Age: At least 21 years old.
• Criminal Record: The applicant should not have any criminal records in the past.
• Prohibited Associations: Applicants shouldn’t be a sub-broker, stockbroker, depository participant or linked to such entities.

Moreover, the applicant must have a relevant educational qualification which includes:

• A professional qualification or PG degree in business management, finance, economics or a related field from a recognised institution.
• NISM Certification for Investment Adviser is required.

Some other recognised qualifications include:

• CA;
• CS;
• CFA;
• MBA in Finance.

Documents Required for Investment Adviser Registration

Registering as an Investment Adviser with the Securities and Exchange Board of India (SEBI) involves fulfilling several requirements and submitting key documents. Depending on the applicant type—Body Corporate/Company, LLP/Partnership Firm, or Individual/Sole Proprietor—the documents and details vary. Below is a categorized breakdown of the required documents and details for each applicant type.

Documents Required for Body Corporate/Company

1) Basic Identification:

• 15-digit GST number or relevant declaration
• PAN card of the firm/applicant
• Address proof:

(a) If owned: Sales Deed or Recent Utility Bill

 (b) If rented: Registered Rent Agreement or Bank Statement/Passbook, and NOC from the owner

• Ownership proof (Sales Deed or Utility Bill)

2) Company Documentation:

• Certificate of Incorporation (CoI)
• Memorandum of Agreement (MOA) containing relevant clauses (name, registered office, object clause, first and last page)

3) Declarations:

• Status of registration as an Authorized Person with stock exchanges or AMFI.
• If not registered, a declaration on company letterhead signed by the Authorized Signatory.

4) Shareholding & Ownership Details:

• Shareholding details, including UBO (Ultimate Beneficial Ownership) for shares above 9%
• Directorship or ownership details of directors in other entities.

5) Financial Records:

• Copy of ITR or Form 16 for the last three years
• Net worth certificate (not older than six months) certified by a Chartered Accountant.

6) Business Details:

• Proposed business plan detailing fees, services, and asset management strategies.
• Office infrastructure, including equipment, communication facilities, and research tools.

7) Legal and Compliance Records:

• List of disputes (settled and pending) in the last five years, along with declarations.
• Credit score report from CIBIL.

Documents Required for LLP/Partnership Firm

1) Basic Identification:

• 15-digit GST number or relevant declaration
• PAN card of the firm/applicant
• Address proof:

(a) If owned: Sales Deed or Recent Utility Bill

(b) If rented: Registered Rent Agreement, Bank Statement/Passbook, and NOC from the owner

• Ownership proof (Sales Deed or Utility Bill)

2) Entity-Specific Documents:

• For Partnership Firms: Registered Partnership Deed and Certificate of Registration.
• For LLPs: Incorporation Certificate and LLP Partnership Deed.

3) Ownership and Compliance Details:

• Details of partners’ ownership in other entities.
• ITR or Form 16 for the last three years.

4) Qualification & Experience:

• Educational and experience certificates for the Principal Officer and other personnel.
• NISM X-A and X-B certifications or valid CFP certificates.

5) Financial Records:

• Assets and liabilities statement certified by a Chartered Accountant (not older than six months).

6) Business Details:

• Proposed business plan with risk profiling methodology and sample questionnaires.
• Infrastructure details, including research tools and communication facilities.

7) Legal and Compliance Records:

• Declaration of disputes (settled and pending) in the last five years.
• Credit score report from CIBIL.

Documents Required for Individual/Sole Proprietor

1) Basic Identification:

• 15-digit GST number or relevant declaration
• PAN card of the applicant
• Address proof:

(a) If owned: Sales Deed or Recent Utility Bill

(b) If rented: Registered Rent Agreement, Bank Statement/Passbook, and NOC from the owner

• Ownership proof (Sales Deed or Utility Bill)

2) Qualification & Experience:

• Education and experience certificates for the applicant and associated personnel.
• Certification in Financial Planning, Fund or Portfolio Management, or Investment Advisory Services (e.g., NISM X-A and X-B).

3) Financial Records:

• ITR or Form 16 for the last three years.
• Certified net worth statement not older than six months.

4) Business Details:

• Proposed business plan with fee structures and risk profiling methodology.
• Infrastructure details, including office equipment and communication facilities.

5) Legal and Compliance Records:

• List of disputes (settled and pending) in the last five years with declarations.
• Credit score report from CIBIL.

Online Procedure for Investment Adviser Registration under BSE Portal

The process of registering as an Investment Adviser involves several important steps to be completed on the BSE India Membership Portal.

Step 1: Visit the Registration Portal

Begin by accessing the BSE India Membership Portal through the following link: https://membershipraia.bseindia.com/.

Step 2: Register as a New User

• Click on the "Register" option to initiate the creation of your account.
• Enter all the required information to set up your login credentials.
• Complete the registration process to move forward.

Step 3: Log in to Your Account

• Use the credentials you created during registration to log into the portal.

Step 4: Initiate a New Application

• Once logged in, select the "New Application" option.
• Choose the appropriate Application Type and Entity Type from the dropdown menu.
• Click to start your application.

Step 5: Complete the 12-Tabs Application Form

The application form is divided into 12 tabs. Each tab must be completed step by step:

a) Applicant Details

• Fill in all necessary information under this tab.
• Attach the required supporting documents.
• Save your progress by clicking "Save & Draft," and proceed by selecting "Save & Next."

b) Address Details

• Fill in the address information for each selected address type, such as Correspondence Address or Permanent Address.
• Add the entries one by one by clicking "Add" and then move to the next tab.

c) Other Details

• Provide all required information and upload necessary documents in this section.
• Save and proceed to the next tab.

d) Personnel Details (Non-Individual Entities)

• For non-individual entities (companies, LLPs, etc.), enter the details of key personnel.
• Upload the supporting attachments for each entry.
• Save the tab and move forward.

e) Personnel Details (Individual Entities)

• Individual applicants must also fill in personnel information, similar to the process for non-individual entities.

f) Shareholder Details

• Add information about major shareholders based on the options provided.
• Save and proceed to the next step.

g) Other Registration Details

• Complete all required fields, selecting "Yes" or "No" as applicable, and save your progress.

h) Infrastructure Facilities

• Provide details about your infrastructure, including equipment and facilities.
• Upload supporting documents before proceeding to the next tab.

i) Other Information

• Enter additional required information and respond to questions with "Yes" or "No."
• Save and move to the next section.

j) Change in Control

• If applicable, enter details about any changes in control.
• Attach necessary documentation and save the tab.

k) Questions Tab

• Respond to the questions in this section and upload required attachments.
• Save and proceed.

l) Bank Details

• Add your primary bank account details, selecting it as the default account.
• If applicable, add secondary bank accounts.
• Save and move to the next step.

Step 6: Declaration

• Carefully review all the declaration points provided.
• Check the "I Agree" box and submit your application.

Step 7: Monitor Your Application Status

• After submission, you can track your application's progress under the "My Application" section of the portal.
• This section will provide updates on the status of your submission and any additional steps, if required.

By following these steps, you can successfully complete your Investment Adviser registration through the BSE India portal. Ensure that all information provided is accurate and supported by the required documentation to avoid delays in processing.

Why Whizseed for Investment Adviser Registration?

If you want to apply for SEBI Investment Advisor Registration, filing an application on you won can be very complicated and time consuming due to all the documentation & paperwork. If you connect with us, you registration process will be smoother & more efficient. Here how we can help you:

• Consultation: To know you requirements, our team will offer personalised consultation & guide you through the complete process of SEBI Research Analyst Registration
• Initial Stage Advice: Our consultant will conduct an initial assessment of your eligibility & prepare for the registration. On the basis of this, our experts will give you some advice so that you can meet the necessary criteria & reduce the risk of having your application rejected by SEBI.
• Documentation: Before applying, it is important to have a correct and complete documentation. Whizseed, with its team will help you in preparing & organizing all the necessary documentation as per the SEBI standards.
• Application: Our team will handle the complete application process on your behalf. You can rest assured that your form will be submitted correctly in prescribed time. We have more than a decade of expertise when it comes to SEBI procedures.