The regulation for SEBI Registered Investment Advisers has set off ripples of change in the Indian retail advisory market. With growing investor awareness and regulatory pressure on commissions, licensed, fee-based advisory is the surest, most future-proof way to grow!
If you already have or are thinking about starting an independent advisory practice in India, understanding the benefits of the SEBI Registered Investment Adviser Regulation (2013) can help you steer your practice in the right direction. Become a SEBI registered investment adviser to be:
An individual, partnership firm or corporate can apply to become a Registered Investment Adviser (RIA).
A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the central government or any state government or a recognised foreign university or institution or association; OR graduation in any discipline with an experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management.
The applicant should also have a certification on financial planning or fund or asset or portfolio management or investment advisory services: (a) from NISM; or (b) from any other organization or institution including Financial Planning Standards Board India or any recognized stock exchange in India provided that such certification is accredited by NISM.
Individuals seeking registration should have minimum capital of Rs. 1 lakh, whereas a corporate should have minimum capital of Rs. 25 lakh.
Application fees: Rs. 5000/- (Individuals) and Rs. 25,000/- (Company or Firm)
Registration fees: Rs. 10,000/- (Individual) and Rs. 500,000/- (Company or Firm)
You can also consider joining forces with another practice that is already registered with SEBI, and form a partnership or body corporate to continue. This is a beneficial growth strategy that is finding many takers in India today.
India's only exchange for buying, selling or merging of advisory practices, the IFA Marketplace offers fair valuation and networking services to help you identify the growth or transformation strategy that works best for you.
The RIA model is still nascent in India, and thus relatively less understood. The iFAST RIA Incubator program RIA Network offers you the chance to explore the fee-based advisory model before you commit to it, with complete support for compliance, fee management and marketing.
Once you decide to transition, the program offers support with licensing and infrastructure to help you get started on your own.