how to become a sebi registered investment advisor

The fundamental point which SEBI wanted to achieve was that there are a lot of investors who are looking for independent advice. And when we say independent, it really means independent — which is in a fiduciary capacity. It’s just like a doctor giving advice to a patient, where the patient is paying the doctor.

Similarly, no manufacturer pays the advisor — the client pays a fee. That arrangement was very important in the eyes of SEBI because there were a lot of investors who were certainly looking for very independent, unbiased advice. That’s where the RIA regulations were introduced back in 2013.

It essentially means advice that is given to an investor, which has to be one-on-one advice. There are also many kinds of advice that can be given as one-to-many, and those are typically termed Research Analysts (RA).

• This is the key difference — when you give one-on-one advice it is Investment Advisory (IA); when you give one-to-many, it is Research Analysis (RA).
• Many people often get confused between these two terms. Both IA and RA may have the same ingredients — they may discuss mutual funds, stocks, or debt securities — but the approach is completely different.
• As mentioned earlier, unlike distributors where a commission is paid, under an RIA the client pays a fee directly. A conflict of interest has to be eliminated to a large extent.
• However, there are situations where conflicts cannot be completely eliminated, especially when transitioning from one avatar to another — for instance, from a distributor to an RIA. In such cases, you need to disclose this clearly, because you might still be earning commissions from legacy clients. After signing a client as an IA, you cannot distribute to that client anymore.

If you have some historical commissions, you may continue earning those, as SEBI has provided for that.

There are two types of structures under which an IA can seek a license:

1. Individual structure, and

2. Non-individual structure, also known as a body corporate.

Earlier, the sebi registered investment advisor eligibility were quite stiff (prior to 17th December 2024), but after that SEBI relaxed the norms significantly.

When you become an IA, you are known as a Principal Officer (PO) — the head of that entity.

•  ANY graduate (in any discipline) is now eligible to apply to become an IA or RA .
• In addition to educational qualifications, every applicant must also complete the mandatory NISM certification requirements. Additional Mandatory certifications include NISM Series X-A, which is also known as Investment Adviser - Level 1, and NISM Series X-B, which is also known as Investment Adviser - Level 2.
• The education criteria along with these certifications are compulsory for both applicants applying as RIA and directors who are getting their company registered with SEBI as an RIA company.

• There are also people who work under the RIA who are known as PAIs (Persons Associated with Investment Advice). For them, the educational requirement has been relaxed to minimum graduation (earlier it was postgraduate).
• The experience requirement has been completely removed by SEBI — both for Principal Officers and PAIs. While having experience is good, it is no longer mandatory.

The regulator is now the Bombay Stock Exchange (BSE), whose mother regulator is SEBI.

You must go to the BSE portal, select the IA registration option (under “IA and RA”), and register yourself. The process is self-explanatory, and BSE also provides a helpline to clarify your queries.

Registration fees (updated):

* Individuals: ₹15,000 + 18% GST

* Non-individuals (Pvt Ltd / LLP):

* ₹5,50,000 + 18% GST if license is granted for 5 years

* ₹3,50,000 + 18% GST if license is granted for 3 years

Once submitted, BSE will review and, upon approval, grant an RIA license or certificate to you.

Skillsets Required to Become a Successful RIA

To thrive as an Investment Advisor, you must possess a combination of five key skills:

1. Financial Planning and Investment Knowledge – this is the backbone of advisory.

2. Regulatory and Compliance Understanding – since it’s a regulated business, understanding SEBI rules is crucial.

3. Client Relationship Management – building trust with clients and families is key.

4. Strong Analytical and Research Skills – because you’re working primarily with numbers and analysis.

5. Communication and Presentation Abilities – to clearly convey your advice and analysis.

Having all these in good proportion helps you establish yourself faster in the market.

At the entry level, an RIA can expect to earn around ₹5–10 lakh per annum.

Once established, this can rise to ₹25–50 lakh per annum at a minimum, depending on your skill and credibility. With high-net-worth clients, RIAs can even earn ₹1 crore+ per annum, as this segment prefers independent and unbiased advice and is happy to pay for it.

Commission-Based vs Fee-Based Models

RIAs work on a fee-based model, not a commission-based model.

According to SEBI’s client segregation rules, you cannot earn both commission and fee from the same client.

1. Fixed Fee Model

2. AUA (Assets Under Advice) Fee Model

Currently, the maximum fixed fee is reviewed periodically; please refer to the latest BSE/SEBI guidance for the current fixed-fee cap.

Accredited Investors

An Accredited Investor (as defined under SEBI) is someone with higher financial sophistication, measured by income or assets.

With accredited investors, the RIA can negotiate any fee structure, since the fixed or AUA limits do not apply. 

However, you must first obtain an Accredited Investor Certificate (for example, from a CVL).

Time Required to Build a Stable RIA Practice

It typically takes 3–5 years to stabilize your practice.

Starting an RIA practice requires mental preparation, understanding regulatory costs, and managing ongoing compliance.

* Semi-annual audits

* Reporting requirements

* Conflict of interest policies

* Client segregation (especially if you also distribute products)

* Technology, legal, and compliance costs

The foundation of the RIA business is trust. Since there’s no conflict of interest, clients see RIAs as independent professionals.

However, convincing clients to pay for advice can be challenging — especially since they may be used to “free” advice from banks or brokers. Educating them about unbiased advice and regulatory protection helps bridge that gap.

To stand out, specialization helps — whether it’s HNIs, NRIs, ESG investing, or financial planning.

You can also grow through:

* Thought leadership – writing blogs, appearing in media, etc.

* Referral programs – leveraging satisfied clients for new ones.

* Partnerships – with professionals who refer clients mutually.

Competition and Industry Trends:

Investor awareness is increasing rapidly, fueled by media coverage and financial literacy drives.

Regulators are supporting this growth, and fintech innovations like robo-advisory and hybrid advisory models are emerging.

With growing wealth and financial consciousness, there’s high demand for personalized financial planning — something only RIAs are legally permitted to offer under SEBI’s definition.

India’s affluent and HNI population is growing rapidly, especially post-COVID. Retail investor participation is booming, and financial literacy is improving.

As awareness increases, demand for professional, unbiased RIAs will surge.

RIAs differentiate themselves through customized, high-touch financial planning, niche specialization, and unbiased advisory.

With technology, AI, and CRM tools improving efficiency, the next decade will see a major shift in how advisory is delivered — blending human expertise with digital tools.

However, remember to follow BSE advertising guidelines before marketing on platforms like LinkedIn, YouTube, or newsletters.

You can start:

* Solo: Lower cost, full independence, higher initial risk.

* Join an existing RIA firm: Learn practical operations, compliance, and gain experience before starting your own.

* Build a team: As your client base grows, expand your team with competent members.

Though capital requirements are now reduced, having some initial capital helps scale faster and fund marketing or technology investments.

Ideal candidates are those who are:

* Passionate about financial markets and advisory

* Enjoy teaching and imparting knowledge

* Have a strong ethical and client-centric focus

* Possess an entrepreneurial mindset

1. Underpricing or giving free advice – it’s not allowed and undervalues your expertise.

2. Neglecting client relationships – existing clients are your strongest brand ambassadors.

3. Ignoring compliance – incomplete documentation or audits can attract penalties.

Compliance is non-negotiable; regulators are vigilant and can audit at any time.

1. Continuous client education – empowering clients adds immense long-term value.

2. Continuous learning and staying updated – regulations evolve constantly.

3. Networking and community participation – through associations like ARIA (Association of Registered Investment Advisors).

ARIA, a Section 8 company, works closely with SEBI to build the RIA ecosystem, provide training, and represent industry feedback. It connects RIAs with peers and creates a collaborative environment for professional growth.

Every applicant must clear the NISM Series X-A (Investment Adviser – Level 1) and NISM Series X-B (Investment Adviser – Level 2) certifications before filing the application with BSE for the RIA license.

These certifications are mandatory for both Principal Officers and Persons Associated with Investment Advice as per SEBI’s RIA Regulations.

If you’re wondering how to become a SEBI registered investment advisor, the process involves meeting SEBI’s eligibility requirements, obtaining the necessary certifications, and completing the registration process through the SEBI Intermediary Portal. Fulfilling the SEBI registered investment advisor eligibility criteria — including relevant education, experience, and qualifications — allows you to offer professional and compliant investment advice in India. Partnering with Taxation Consultancy can help you with documentation, compliance, and registration guidance to simplify the process.

To meet the SEBI registered investment advisor eligibility norms, you need a finance-related degree, NISM-Series-XA and XB certifications, relevant experience, and a minimum net worth as defined by SEBI.

To know how to become a SEBI registered investment advisor, visit the SEBI Intermediary Portal, fill out the online form, upload documents, pay the registration fee, and wait for SEBI’s approval after verification. You can also get professional help from Taxation Consultancy to ensure a smooth application process.

Yes, anyone offering paid investment advice in India must register with SEBI under the Investment Advisers Regulations, 2013.

The SEBI registration is valid for five years and must be renewed before expiry to continue offering advisory services legally.

Registration boosts your credibility, ensures transparency, builds client trust, and allows you to operate ethically under SEBI’s regulatory framework. For expert guidance during the registration process, visit sebi registered advisory