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How to Pursue a Career as an Investment Advisor in India?

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An investment advisor is also known as a sub-broker who is an individual who provides financial advice and assistance to clients. They provide advisory services from financial planning to investment strategies. There is a need for individuals to get certifications of registration from SEBI to begin their journey as sub-brokers in India.

The Securities and Exchange Board of India, widely known as SEBI, was established on 12 April 1988. SEBI is the regulatory body for securities and commodity markets in India founded by the Ministry of Finance, Government of India. It got its Statutory Powers on 30 January 1992 with the SEBI Act, 1992.

The sub-broker must follow the terms and conditions, the rules of renewal, and other matters to become a major potential sub-broker by SEBI. Getting the best opportunity is about fulfilling one’s needs and requirements in the best interest. Many stock broking firms in India offer the facility of becoming sub-brokers, and IIFL Securities is one of them. IIFL Securities is a reputable financial company in India servicing for over two decades.

Documents to Become an Investment Advisor

Here is a list of the documents to submit along with the request:

  • Proof of address
  • Evidence of identification
  • Proof of qualification that includes your degrees.
  • Certificate from CA declaring net assets
  • Income Tax Return for the last three years

Registration With SEBI For Sub- Broking

Here is the step-by-step process to register as a sub-broker online on the SEBI website.

Go to the SEBI Intermediary Portal

Once you visit the website online, click on the Self-Registration option.

Give your basic information.

After filling in the application, click on the button ‘Proceed,’ then you will be directed to another payment tab. On SEBI’s portal, you can create your login credentials online.

Complete Payments

In the next move, you will have to make the payment. Payment options such as internet banking or debit card are available to complete payments. For payments, click on the ‘Online’ payment mode. After that, you must click the button ‘Proceed to pay,’ then you will be directed to the payment gateway.

Confirmation Email 

The applicant will get a confirmation email from SEBI within 7-10 working days, which includes the payment of fees and login credentials.

Fill In The Applicatio

For account login, you must use your given login credentials. After login into your account, you must fill up the details of the application. You must ensure that all the documentation and declarations are connected to an application. All you need to do is submit the application within 14 days once you get the login credentials.

Fill Out Form A 

After that, you must log in to the SEBI portal using your credentials. Then, click on the option ‘the Investment Advisor.’ You will get the Navigate to registration option in the drop-down menu. You can see the registration Form-A with different parts to file and complete.

Response From SEBI 

Get contact within one month of the application getting filed. If there is any question from SEBI, ensure to answer within the given time.

Grant of a Registration Certificate 

The receipt of an email from SEBI for the grant of a registration number by post and a registration certificate is received by post at the registered address specified in the application.

Who Can Become an Investment Advisor in India? 

Any person, firm, or group of persons who want to start a business that provides investment advice to investors and traders must register as a sub-broker. Applying for a Registered Investment Advisor (RIA) is available for any individual, sole proprietor, partnership firm, company, or body corporate in India. There is a maximum of 150 members, then registering with SEBI is mandatory.

However, here are the following are exempted from registration under SEBI:

  • Insurance agents or brokers who have completed registration with IRDAI (Insurance Regulatory and Development Authority).
  • Pension advisors who have done registration with PFRDA (Pension Fund Regulatory and Development Authority).
  • Mutual fund distributors whose registration is completed with AMFI (Association of Mutual Funds in India) provide clients with essential advice.

Once you get a registration certificate from the market regulator SEBI, you can start working as an investment advisor. There is a need for the advisor to update them on the new legislation to work constantly and smoothly. An individual must go to the official website, where they can get the latest news related to the circulars and other updated guidelines. There is a need for the individual to comply regularly with the reporting requirements from SEBI.

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