Recently, several individuals have approached me to who know how to become an Investment Adviser. Yes, they want to provide advice on financial products like stocks, mutual funds, derivatives, etc., for a fee.
Well, if you want to become an Investment Adviser in India, you need to get registered with SEBI under SEBI (Investment Advisers) Regulations, 2013.
The Regulation has laid down the criteria as to who can be an Investment Adviser and the process, that is, how to go about making the application to get registered with SEBI as a Registered Investment Adviser or RIA.
Let us first look at the eligibility criteria. Only if you fulfill these do you go further to make an application to SEBI.
What are the criteria to be fulfilled for RIA?
#1 – Qualification requirements:
In terms of qualification requirements, you need to be a post graduate in finance, business management, economics, etc., or you should have a professional degree in the related fields to be eligible to apply for SEBI registration.
Read more: Qualification requirements for SEBI Investment Advisers
Update: SEBI has approved the consultation paper on amendments to IA regulations and enhanced the qualification requirements. To know more, click here.Ā
#2 – Certification requirements
Along with the qualification requirements, there are the certification requirements wherein you need to complete NISM exam for Investment Advisers.Ā The examination has 2 levels –Ā āNISM Series X-A and X-B: Investment Adviserā.
Alternatively, you can also do other certificationsĀ which is accredited by NISM for Investment Advisers. Click here to know more.
#3 ā Net-worth requirements
You need to have a minimum net worth or net tangible assets of Rs. 1 lakh. This net worth / net tangible assets has to be certified by a Chartered Accountant with sign, seal and stamp.
Once you fulfill the above mentioned requirements, you can start the application process.
What is process to get registered as RIA with SEBI?
The good news is that entire application process is online. However, some of the SEBIās regional offices also require physical submission of documents. So you need to check with the SEBIās regional office closer to your registered office address or place of business. For example, for entire Maharashtra,the Head Office of SEBI at Mumbai processes the applications.
Now let us quickly see the steps for online application:
- Pay the application fee.
- Create your login id on SEBIās portal. Here you need to mention the contact details and the details of application fees paid.
- Receipt of confirmation from SEBI for payment of fees within 1 working day.
- Keep the required documents ready. You need to have .pdf copies of all documents. Click here to view the list of documents.
- Receipt of login credentials from SEBI within 7-10 working day.
- Login into your account and fill in the application details. You need to attach various documents and declarations too.
- Submit the application.
- Please make sure that you fulfill all criteria to get registered with SEBI as an Investment Adviser. Also fill in all the details required in the application. Else, SEBI can put your application on hold.
- Receipt of communication from SEBI after 30 days of submission of the application.
- Response to queries raised by SEBI
- Receipt of approval by SEBI and payment of registration fees.
- Receipt of email from SEBI mentioning the registration number followed by certificate of registration via post.
Click here to view a step-by-step guide to make online application to SEBI.
Thatās it. Once you receive the certificate, you can officially start to practice as a Registered Investment Adviser (RIA).
To view a detailed post on how to get registered as an Investment Adviser with SEBI,Ā click here.
To know how to get registered with SEBI as a company / LLP,Ā click here.
If you are looking for professional help to make an application to SEBI, you can write to me at kruti@cskruti.com.
Very good information mam, thanks
visit our site- https://sekhareducation.com
I am MBA (Finance) amd M.Com degree holder, I want to open part time advisory business. Which Exam I have to clear of NISM ?
Should I have to clear this exam on every year for ongoing in future ?
Mahesh Shah
Do you want to register as a Investment Adviser or research analyst? This will help – https://cskruti.com/should-i-register-with-sebi-as-investment-adviser-or-research-analyst/
The article has all the relevant links.
Mam,
I have not experience of sales of financial product, but I am investigating since last 5 year in share market, will my investment period count as Experience ?
If not , please there is any chance to register IA without Financial product sales experience.
Mahesh Shah
MBA finance
The answer to both your questions is NO.
Hi,
Post graduation diploma in Financial Management from IGNOU.
Is the degree eligible for IA/RA certificate?
Hi, for IA I would request you to go through my blog – https://cskruti.com/demystifying-enhanced-qualification-requirements-for-investment-advisers/
For RA, you will need post graduate degree / diploma in finance, accountancy, business management, commerce, economics, capital
market, financial services.
Hi Kruti
I am M.Com graduate also hold ARN for MFD from amfi from 2016.
I have passed IA level 1 and studding for level 2.
1. Should i appear for RA too
2. Should i practice with RIA firm to improve practice or gain experience on my own.
Mahesh
Hi Mahesh, here is my response:
1. do you want to also register as a Research Analyst? If yes, then you need to appear for RA NISM certification too.
2. This is a very subjective question and I am not the best person to answer this.
Hi, is IGNOU PG diploma in finance distance learning degree enough for education qualification for IA along with NISM certificates?
Hi. The PG diploma course should be of 2 years duration. Also you need to have atleast 5 years of experience in advisory or fund management activities.
Hi,
I have a graduate degree and 3 year work experience, currently self employed.
I want to become an investment advisor, should I become a mf distributor or insurance agent to complete experience requirement or should I do a PGDFM from IGNOU.
As per latest news will 1 year PGDFM remain relevant until I complete it.
Hi Ashish, as per the enhanced requirements, you need post graduation (2 years course) as well as 5 years experience to apply to SEBI. So you can be a MF distributor for 5 years or can get employed in a wealth management firm for 5 years to fulfill the experience criteria. And will need PG degree or diploma (2 year course) in finance or related field.
Hello again,
I checked and there is no official notification regarding these changes. I have a bachelor degree, 3 year work experience in a nationalized bank, and 2 year as mutual fund advisor having NISM Series VA certificate. If I apply now will this 2 year working as a mutual fund advisor be counted, I can provide details of clients I have served.
Or has the SEBI already implemented these changes without any formal notification and I have to do a MBA. In such case will a MBA from IGNOU suffice.
Thank for your valuable guidance.
Hi Ashish, pls refer to press release by SEBI on the approved changes- https://www.sebi.gov.in/media/press-releases/feb-2020/sebi-board-meeting_46013.html
My views about qualification requirements are expressed in this article – https://cskruti.com/demystifying-enhanced-qualification-requirements-for-investment-advisers/
Pls get in touch with the local office of SEBI near you for further confirmation.
Hope this helps.
Hello Mam my question how many cibil score point is compulsory to get IA from SEBI
Hi. There is nothing specified by SEBI. SEBI does process the applications with low score. However a good score is preferable to avoid questions from SEBI.
Hi Kruti,
Wanted to know what are the requirements for registering my LLP as a RIA? Do all the members of the LLP need to give NISM exam or even 1 member giving is enough.
Also as I understand, an individual who is working in a job in the financial sector is not allowed to register as a RIA. Is it right? If so, is a LLP allowed to register as a RIA if some of its partners are working in a job?
Thanks
Hi Parthiv, all those partners or employees of LLP who will be involved in investment advisory services have to fulfill the qualification and certification requirements.
An individual who is RIA cannot work in the same field as per SEBI. In case of LLP, if the partners are not involved in the advisory activities, then they can carry on with their jobs. Hope I have answered your queries.
If you are looking for professional help in making an application to SEBI, pls let me know.
Is an mba holder in finance and administration from a private state university approved by UGC but not by AICTE NAAC is eligible for applying as an IA or an RA?
Hi Yogendra, yes, you can go ahead. If you are looking for professional help in making an application to SEBI pls let me know. You can write to me at kruti@cskruti.com
Thank you
My daughter wants to do career in finance. She is presently in second year engineering comp science. Can she study and appear for nism research analyst course. So that she can work in finance firm after completing graduation. Her goal is to become CFA, while working with financial advisory firms.
Hi Shripad, yes she can appear for NISM exam.
Hello Kruti,
Very eloquently described. I had a few queries though:
1. How do I get my CIBIL/Credit score if i have not taken out any loans or like that in my life. My CIBIL report from the Cibil website says “NOT AVAILABLE” for my PAN number. Is providing this data absolutely necessary?
2. I have never paid any income tax in my life. When I was working until 8 years ago, my salary was never enough to fall under the tax bracket. Now I am working on my own doing my business(the business is in the unorganised sector, so it is not registered), but have never shown any real income to file any taxes. What can one do if S/He has never filed any income tax in their life?
Regards,
Rabindra.
Hi Rabindra, here is my response:
1. Even if you have not taken any loans, you still need to apply for your CIBIL score and submit to SEBI the reply you received from CIBIL.
2. You need to explain the same to SEBI in a letter. If SEBI officer is convinced, your application will be processed.
If you have further queries, you can write to me at kruti@cskruti.com.
Hello Kruti, it’s so nice to have required information in plain english. Thanks a bunch to bloggers like you š
Will appreciate your comments on
– What’s the scope for an IA / RA in India? What I mean is that how much can they charge to their clients? Can it be a share of Client’s profits?
– Are there job opportunities as well for IAs / RAs in outside market?
– Can IAs / RAs also become Insurance Agents?
Thanks in anticipation
Hi Maheb. Thanks for your feedback. Here is my response: 1) There is no restriction on the quantum of fees to be charged. As per SEBI regulations, the fees should be reasonable. In my view IA / RA can not charge performance based fees or have a share in client’s profit. However, there is no guidance from SEBI on performance fees. 2) I will not be able to comment on the same. 3) In my view, yes, they can as insurance does not come under purview of SEBI.
Hi Kruti,
Fan of your blog. Just subscribed to it. It really helped me gain clarity on a lot of things I couldn’t understand earlier.
I am an aspiring Investment Advisor but I do not fulfill the educational qualifications criteria yet as I’m only a bachelors degree holder with just over 2 years of Financial Industry experience.
I am now Planning on completing the Post Graduate Diploma in Financial Management(PGDFM) from Mumbai University’s Distance Learning Institute or a similar PG Diploma from MIT, Pune.
Would the completion of either of the two fulfill the educational qualification criterion for me?
Secondly, is it possible for two RIAs to come together as a partnership and be treated like .Individual’ (essentially, the fees and capital adequacy requirement of that of an individual)?
Thanking you in anticipation!
Hi Amogh. Thanks for your feedback. You can do PG from either of the them. For your second question, it is not possible. IF there is a partnership firm and services are provided under that partnership firm, the firm needs to get registered with SEBI. Moreover the fees and capital adequacy requirements are same for both individual and partnership firms.
How much time required to crack nism Investment advisor exam level1 and level 2 .how much time need to crack this exam as a non finance back ground student .
Hi Prashanth. It depends on your hold on the subject.
If i do the NISM course then can i fulfill the gualification criteria
Hi. No, you will fulfill the certification requirements. To fulfill the qualification criteria, you need to have a professional qualification or post graduate degree or diploma in finance, economics, commerce, business management, etc. from a university or institute recognised by central or state government.
Hi Kruti
I have a quick query regarding criteria to be registered as Investment advisor.
I have masters in engg and 5+years work ex in a non financial. Do I meet the criteria?
If not then what can I do about it?
Thanks a lot
Appreciate ypur reply
Hi Gyan, in my view you do not fulfill the qualification criteria. In your case you need to have a professional qualification or post graduate degree or diploma in finance, economics, commerce, business management, etc. from a university or institute recognised by central or state government.
Thanks..So what do you suggest that what would be the quickest way to meet the criteria for IA… a certfication?
The quickest way will still be to have a professional qualification or post graduate degree or diploma as mentioned in my earlier reply š
hi CS kruti,
I want to apply for Investment adviser and research analyst,. I have done post graduate programme in securities market from NISM( 1 year course), i have CMT level 1 and NISM certificate of equity derivative, and certificate of risk mgmt and operation. i have been trading from last 7 years.Can i apply for the above?
Hi Saurav. In my view you do not fulfill the qualification requirements. SEBI needs post graduate diploma or a professional degree. Would suggest you to complete the CMT course. NISM PG program will not help you fulfill the requirements. The course is treated like a certificate course. when you say you have been trading, have you worked with someone?
Hi kruti
I applied for sebi as an ria. My application was rejected today as I am employed currently. So if one is employed can he not be an ria.
Hi Damodar, in my view one can be employed and also be RIA. However, there should be no conflict of interest between your employment and investment advisory activities. So if you are in Tech department, you can be an RIA too. SEBI may take declarations from you regarding the same. Pls contact SEBI’s head office at Mumbai.
Hi Kruti,
Can you let me know whatās the procedure for becoming portfolio manager?
Thanks
Tapan
Hi Tapan, You need to file an application online on SEBI’s portal siportal.sebi.gov.in. A detailed information on the requirements of PMS registration is given here – https://cskruti.com/pms-registration-with-sebi/
If you are looking for professional help in making an application to SEBI, pls let me know. You can send an email to kruti@cskruti.com.
Hello Maam,
Will One Year Post Graduate Diploma in Management (Financial Management) will be sufficient for the academic part with the B.Tech for the registration of IA ?
Kindly reply as I have to write the IA Level 2 exam but i dont have the MBA degree .
Hi Shashwat, If the course is from a government recognized university or institute, it should work. The tenure is not a criteria.
Thank you for your reply maam.
Basically i’m applying for http://www.imtcdl.ac.in/programmes/one-year-pgdm/financial-management/curriculum/ . It will be a Distance Education course then also i will be eligible ?
You also help for getting the registration done through SEBI for Investment advisor ?
Yes, in my view you can go ahead. However, best is to confirm from SEBI’s regional office near you. Yes, I do help in making an application to SEBI.
Hi Kruti,
I have been following your blog. Thanks for detailed information on various facets of being an IA or RA. I have a query.
I am planning to register myself as independent research analyst(individual). What are the documents that are required in addition to Qualification(NISM certificate, Educational qualifications), Networth certificate by CA etc? Do we have any additional checklists? Thank you in advance.
Hi Jiddu, pls refer to this article – https://cskruti.com/how-to-register-as-sebi-research-analyst/. The list is given in the article for your reference. Thanks.
You have mentioned Income Tax Returns as a part of documentation to be submitted. Which one is considered as IT returns, ITR-V or ITR-2 ?
Hi Sudhir, Pls submit the one which you have filed and which is applicable to you / your firm. For further queries, you can write to me at kruti@cskruti.com
Hello Kruti,
Very well explained, Thanks a lot !
I had 1 query,
I want to register as a Investment Advisor, but in future I’m planning to start an advisory firm.
So should I now register as an “”Individual” or start a proprietorship firm and then register as a “proprietor” ?
Please help me with your advice.
Thanks in advance
Hi Rahul, SEBI treats individuals and proprietor as same. There is no difference in the process of registration too. So if you already have a proprietorship firm, you have to inform SEBI while making the application and submit Gumastha license / Shops and Establishment license for the same. If you are planning to get registered as an individual now and later open a proprietorship firm, you need to just inform SEBI about it through a letter. No need to go through the process of registration again.
Hope this solves your query. If you have further questions, you can write to me at kruti@cskruti.com
Hi Kruti,
I have PGDBA (Post Graduate Diploma in Business Administration) & Bachelors in Economics,
I would like to Know whether I fulfill the Educational Criteria for IA or RA?
If not then should I go for CFP? & then Apply for IA / RA?
Kindly Provide your valuable inputs in clearing this confusion š
Thanks in Advance;
Mahesh
FYI
PGDBA from Sikkim Manipal Distance University
Hi Mahesh, since the university is recognised by the Government of Sikkim, you fulfill the qualification requirements in my view. If you are looking for professional services in making an application to SEBI, pls let me know. You can write to me at kruti@cskruti.com
Hello Kruti!
I am currently in the process of obtaining MCOM Degree from IGNOU. Is the degree eligible for IA/RA certificate?
Hi Anish. In my view you can go ahead.