SEBI Investment Adviser Registration (RIA)
Give investment advice for a fee, and you must be registered with SEBI under the SEBI (Investment Advisers) Regulations, 2013. Since the December 2024 amendments, a graduate with the NISM certifications can apply, and a deposit starting at ₹1 lakh replaces the old net worth rule. We take you from eligibility check to certificate, and then run the yearly compliance.
What it is
A SEBI registered investment adviser (RIA) is a person or entity that advises clients on investing in securities and other investment products, and is paid for that advice by the client. The adviser earns no commission from fund houses, so its only paymaster is the client.
The law is the SEBI (Investment Advisers) Regulations, 2013, amended by the SEBI (Investment Advisers) (Second Amendment) Regulations, 2024, notified on 16 December 2024. SEBI’s circular of 8 January 2025 (SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2025/003) lays down the working rules on deposits, fees and audit. Day-to-day supervision is with the Investment Adviser Administration and Supervisory Body (IAASB), which is BSE Limited.
Who it applies to
Independent financial planners
Individuals who build financial plans or recommend stocks and funds to clients for a fee. An individual can register in their own name.
Advisory firms and companies
Firms, LLPs and companies giving paid advice through a team. Each needs a principal officer, and a compliance officer.
Professionals advising part-time
Think of a Faridabad CA whose audit clients keep asking where to invest. Professionals such as CAs and CSs can register as part-time advisers and keep their main practice, if the other work involves no SEBI-regulated activity.
Why it matters
Paid advice without registration is illegal
Charging for stock tips, model portfolios or financial plans without registration breaches the regulations. SEBI regularly passes orders against unregistered tip providers on social media and messaging apps.
Clients can verify you
Your name and registration number go on SEBI’s list of registered investment advisers. Clients can check you before they pay.
Clear rules on what you can charge
Fee caps, a written client agreement and risk profiling set the terms upfront. If a client later complains, your records answer for you.
Adviser, research analyst or distributor?
| Investment adviser | Research analyst | Mutual fund distributor | |
|---|---|---|---|
| What you do | Personal advice to each client based on their risk profile | Research reports and recommendations on securities | Sell mutual fund units |
| Who pays you | The client, through a fee | Subscribers or the employer | The fund house, through commission |
| Registration | SEBI, under the IA Regulations 2013 | SEBI, under the Research Analysts Regulations 2014 | AMFI registration (ARN) with NISM certification |
Here is the catch. An investment adviser cannot take commission from product makers for the same clients it advises. Say you distribute mutual funds to 200 families and want to add fee-based advice. Each family must sit on one side of the line, advice or distribution, never both. We help you draw that line before you apply.
Documents required
For an individual
- PAN, Aadhaar and address proof
- Graduation certificate
- NISM Series X-A and X-B certificates
- Bank details and office address proof
For a firm, LLP or company
- Registration certificate, partnership deed, LLP agreement or MOA/AOA
- PAN of the entity and details of partners or directors
- Principal officer’s degree and NISM certificates
- Compliance officer details
For the practice
- Deposit with a scheduled bank, lien-marked to IAASB
- Draft client agreement and risk profiling process
- Fee policy and grievance redressal details
- Declarations on other business activities
How it works
Pick your structure: individual, firm or entity
We look at your plans and decide with you: individual, firm, LLP or private limited company, full-time or part-time. An individual adviser must move to a non-individual structure once active clients exceed 300 or fees in a year exceed ₹3 crore.
Pass NISM Series X-A and X-B
The individual adviser, or the principal officer of an entity, passes NISM Series X-A and X-B. We help you plan the exam timing alongside the paperwork.
Draft the application and client papers
We draft the application along with the client agreement, risk profiling questionnaire and fee policy.
File with SEBI and reply to observations
The SEBI investment adviser registration application is filed online. In practice, SEBI comes back with questions. We answer them and follow up until the certificate is granted.
Place the deposit and start advising
You keep the deposit with a scheduled bank, lien-marked to IAASB. Then we set up client records, invoicing through online book-keeping and your compliance calendar.
Deposit and fee limits
| Maximum clients in the previous financial year | Deposit required |
|---|---|
| Up to 150 | ₹1 lakh |
| 151 to 300 | ₹2 lakh |
| 301 to 1,000 | ₹5 lakh |
| More than 1,000 | ₹10 lakh |
For individual and HUF clients, fees are capped per family. In assets under advice (AUA) mode the cap is 2.5% of AUA a year. In fixed fee mode it is ₹1,51,000 a year, indexed every three years to the Cost Inflation Index. Non-individual clients and accredited investors can agree fees bilaterally under Regulation 15A.
Timelines
Finish the compliance audit by 30 September
The annual compliance audit must be done within six months of the financial year end, which means by 30 September for a year ending 31 March.
Send the audit report within a month
The audit report is submitted to IAASB and SEBI within one month of the date of the report.
Top up the deposit when you grow
The deposit follows your maximum client count in the previous financial year. Cross 150 clients this year, and next year’s deposit moves to ₹2 lakh.
What happens if you advise without registration
SEBI orders
SEBI can direct you to stop giving advice, refund fees collected and keep away from the securities market for a period.
Monetary penalties
Section 15HB of the SEBI Act provides a penalty of not less than ₹1 lakh, which may extend to ₹1 crore, where no separate penalty is provided.
Lost credibility
SEBI publishes its orders on its website. Clients search names before they pay.
Frequently asked questions
Who can become a SEBI registered investment adviser?
Any individual, partnership firm, LLP or company that meets the qualification and certification rules can apply. After the December 2024 amendments, an individual adviser, or the principal officer of an entity, needs a graduate degree in any discipline and the NISM Series X-A and X-B certifications. We check the exact qualification clause against your profile before you apply.
How much deposit does an investment adviser need?
The deposit starts at ₹1 lakh and depends on the maximum number of clients in the previous financial year. It is ₹1 lakh for up to 150 clients, ₹2 lakh for 151 to 300, ₹5 lakh for 301 to 1,000 and ₹10 lakh above 1,000. The deposit is kept with a scheduled bank with a lien in favour of IAASB, which is BSE Limited. Your money stays in your name; it is only lien-marked.
Is there still a net worth requirement?
No, the deposit has replaced the net worth requirement. The SEBI (Investment Advisers) (Second Amendment) Regulations, 2024 moved advisers to the graded deposit system, and SEBI’s circular of 8 January 2025 set the slabs. Existing advisers had to comply by 30 June 2025. For a new adviser with under 150 clients, a ₹1 lakh deposit is enough to start.
How much can a registered investment adviser charge?
For individual and HUF clients, fees are capped per family per year. In AUA mode the cap is 2.5% of assets under advice; in fixed fee mode it is ₹1,51,000, indexed every three years to the Cost Inflation Index. Advisers can switch between the two modes. Non-individual clients and accredited investors can agree fees bilaterally under Regulation 15A. We draft your fee schedule so it stays inside these limits.
Can I give investment advice part-time?
Yes. SEBI allows part-time investment advisers who keep an arm’s-length separation between advice and their other work, which must not be a prohibited SEBI-regulated activity. Examples include chartered accountants and company secretaries in practice. We check your other work against the rules before you apply. It is a good way to test demand before building a full advisory practice.
When must an individual adviser convert to a firm or company?
When active client agreements cross 300 at any point, or annual fees cross ₹3 crore, whichever comes first. At that stage the individual must register as a non-individual investment adviser, such as an LLP or a company. Plan it early: the new entity needs its own principal officer, compliance officer and registration. We set up the entity and manage the move for you.
Can a mutual fund distributor also become an investment adviser?
Yes, but not for the same clients. An investment adviser cannot earn distribution commission from the clients it advises, so advice and distribution must be separated at the level of each client and family. A distributor who wants to move fully to fee-based advice can stop distribution for those clients. We help you design the split so both the distribution and advisory records stand up to an audit.
What ongoing compliance does an RIA have?
The main items are an annual compliance audit within six months of the financial year end, and filing the report with IAASB within one month of it. You also keep client agreements, risk profiles, advice records and fee invoices, and maintain the deposit at the right slab. NISM certification must be kept valid. With a calendar and clean records, the annual audit becomes routine paperwork.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
For SEBI investment adviser registration, budget separately for SEBI’s fees, the NISM exams and the ₹1 lakh to ₹10 lakh deposit. The deposit stays your money, only lien-marked.
Ready to begin?
Tell us whether you will advise as an individual or through an entity, and we will map your path to SEBI registration.