{"id":12346,"date":"2021-05-24T22:58:11","date_gmt":"2021-05-24T17:28:11","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=12346"},"modified":"2022-03-06T13:25:21","modified_gmt":"2022-03-06T07:55:21","slug":"become-registered-investment-advisorria","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/","title":{"rendered":"Become Registered Investment Advisor(RIA)"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d308236f9db\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d308236f9db\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#INVESTMENT_ADVISOR_REGISTRATION\" title=\"INVESTMENT ADVISOR REGISTRATION\">INVESTMENT ADVISOR REGISTRATION<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#INTRODUCTION\" title=\"INTRODUCTION\">INTRODUCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#MEANING\" title=\"MEANING\">MEANING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#REGISTERED_INVESTMENT_ADVISOR\" title=\"REGISTERED INVESTMENT ADVISOR\">REGISTERED INVESTMENT ADVISOR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#ELIGIBILITY_OF_REGISTERED_INVESTMENT_ADVISOR\" title=\"ELIGIBILITY OF REGISTERED INVESTMENT ADVISOR\">ELIGIBILITY OF REGISTERED INVESTMENT ADVISOR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#DOCUMENTATION_REQUIRED_REGISTERED_INVESTMENT_ADVISOR\" title=\"DOCUMENTATION REQUIRED REGISTERED INVESTMENT ADVISOR\">DOCUMENTATION REQUIRED REGISTERED INVESTMENT ADVISOR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#FEE_STRUCTURE_EFFECTIVE_FROM_1ST_APRIL_2021\" title=\"FEE STRUCTURE EFFECTIVE FROM 1ST APRIL 2021\">FEE STRUCTURE EFFECTIVE FROM 1ST APRIL 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#PROCESS_OF_REGISTRATION_UNDER_REGISTERED_INVESTMENT_ADVISOR\" title=\"PROCESS OF REGISTRATION UNDER REGISTERED INVESTMENT ADVISOR\">PROCESS OF REGISTRATION UNDER REGISTERED INVESTMENT ADVISOR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#OFFLINE_PROCESS_OF_REGISTRATION\" title=\"OFFLINE PROCESS OF REGISTRATION\">OFFLINE PROCESS OF REGISTRATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#ONLINE_MODE_OF_REGISTRATION\" title=\"ONLINE MODE OF REGISTRATION\">ONLINE MODE OF REGISTRATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#GRANTING_OF_CERTIFICATE\" title=\"GRANTING OF CERTIFICATE\">GRANTING OF CERTIFICATE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#POST-REGISTRATION_COMPLIANCES\" title=\"POST-REGISTRATION COMPLIANCES\">POST-REGISTRATION COMPLIANCES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#BAN_ON_FREE_TRIAL_SERVICES\" title=\"BAN ON FREE TRIAL SERVICES\">BAN ON FREE TRIAL SERVICES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#CHANGES_IN_FEE_STRUCTURE\" title=\"CHANGES IN FEE STRUCTURE\">CHANGES IN FEE STRUCTURE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#TYPE_OF_APPLICANT\" title=\"TYPE OF APPLICANT\">TYPE OF APPLICANT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#RENEWAL_FEES_INR\" title=\"RENEWAL FEES (INR)\">RENEWAL FEES (INR)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#OLD_RATE\" title=\"OLD RATE\">OLD RATE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#NEW_RATE\" title=\"NEW RATE\">NEW RATE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/become-registered-investment-advisorria\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12349\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR.jpg\" alt=\"REGISTERED INVESTMENT ADVISOR\" width=\"832\" height=\"437\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR.jpg 670w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-300x158.jpg 300w\" sizes=\"(max-width: 832px) 100vw, 832px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"INVESTMENT_ADVISOR_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>INVESTMENT ADVISOR REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"INTRODUCTION\"><\/span><span style=\"color: #000080;\"><strong>INTRODUCTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An investment advisor commonly known as a stockbroker, is a person or group of persons, making recommendations for investors and conducting various securities analysis, through direct management of clients\u2019 assets or written publications and receive their fees in return. Securities and Exchange Board of India introduced a new concept of Investment Adviser Regulations in 2013, which aims at segregating the commission from selling advice on investment. To become an investment advisor, a person is required to get registration with SEBI and the said person cannot receive any kind of remuneration or compensation from any person other than his\/her client.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MEANING\"><\/span><span style=\"color: #000080;\"><strong>MEANING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An investment advisor performs the duty of a professionals within the financial industry by providing guidance to the clients in exchange for fees. The clients\u2019 interests are what must be preferred by them, as they owe a fiduciary duty towards their clients.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"REGISTERED_INVESTMENT_ADVISOR\"><\/span><span style=\"color: #000080;\"><strong>REGISTERED INVESTMENT ADVISOR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is a person or a firm who provides advisory service to high-net-worth individuals in order to manage their investments and portfolios. Their fundamental obligation is to provide investment advice that acts on the best interest of their clients\u2019.\u00a0In order to become one, they need to be obtained with the <a href=\"https:\/\/carajput.com\/blog\/category\/sebi\/\">Securities and Exchange Commission\u2019s<\/a> (SEC) or State Securities Administrators. Their payment is just like that of a mutual fund manager. Generally, they earn their revenue through a management fee which is termed in percentage of the assets held for a client.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ELIGIBILITY_OF_REGISTERED_INVESTMENT_ADVISOR\"><\/span><span style=\"color: #000080;\"><strong>ELIGIBILITY OF REGISTERED INVESTMENT ADVISOR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For an individual to get registration as an investment advisor, the following minimum qualifications are required \u2013<\/p>\n<ol>\n<li>The person should have a professional qualification, post-graduate degree, postgraduate diploma in finance, business management, accountancy, commerce, capital market, economics, banking, insurance or actuarial science from a university or an institution, recognised by the central or any state government or any foreign university or institution.<\/li>\n<li>Or the person must be a graduate in any discipline, having at least five years of experience in activities relating to advice in financial products.<\/li>\n<li>Along with this, the person should have certification on financial planning, fund, asset or portfolio management or investment advisory services either from NISM or from any other organisation or institution.<\/li>\n<li>The existing investment advisors seeking registration under new regulations should obtain such certification, within two years from the date of commencement of these regulations.<\/li>\n<li>Investment advisor in the form of corporate bodies to have net worth of at least Rs 25 lakhs.<\/li>\n<li>In case of individual and partnership firms, the condition is to have net tangible assets of at least Rs. I lakh.<\/li>\n<li>The registration certificate granted by SEBU is valid for a period of five years from the date of its issuance.<\/li>\n<\/ol>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-limit.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12351\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-limit.png\" alt=\"REGISTERED INVESTMENT ADVISOR\" width=\"833\" height=\"367\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-limit.png 338w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-limit-300x132.png 300w\" sizes=\"(max-width: 833px) 100vw, 833px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DOCUMENTATION_REQUIRED_REGISTERED_INVESTMENT_ADVISOR\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTATION REQUIRED REGISTERED INVESTMENT ADVISOR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-document-requirment.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-12350\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-document-requirment.png\" alt=\"\" width=\"848\" height=\"651\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-document-requirment.png 593w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/REGISTERED-INVESTMENT-ADVISOR-document-requirment-300x230.png 300w\" sizes=\"(max-width: 848px) 100vw, 848px\" \/><\/a><\/p>\n<p>There are certain documents required to be submitted along with the application of<a href=\"https:\/\/www.caindelhiindia.com\/blog\/sebi-investment-advisors-amendment-regulations-2020\/\"> registration with the SEBI<\/a>. These are &#8211;<\/p>\n<ol>\n<li>Identity proof of the applicant.<\/li>\n<li>Permanent address proof of the applicant.<\/li>\n<li>Proof of qualification as required for becoming an investment advisor.<\/li>\n<li>Experience certificate in case of graduate.<\/li>\n<li>CIBIL Score issued by the concerned authority.<\/li>\n<li>Certificate issued by a Chartered Accountant specifying and authorizing the net worth of the corporate body.<\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/tag\/filing-of-income-tax-return\/\">ITR<\/a> filed by the applicant during the immediately preceding 3 years.<\/li>\n<li>Various other declarations, as required under the law.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"FEE_STRUCTURE_EFFECTIVE_FROM_1ST_APRIL_2021\"><\/span><span style=\"color: #000080;\"><strong>FEE STRUCTURE EFFECTIVE FROM 1ST APRIL 2021<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>For an individual or a partnership firm requiring registration as an investment advisor, an application fee of Rs. 2000 is to be made.<\/li>\n<li>In case of a body corporate or Limited Liability firm (<a href=\"https:\/\/carajput.com\/blog\/tag\/filing-of-income-tax-return\/\">LLP<\/a>), the said application fee is of Rs. 10,000.<\/li>\n<li>After receiving approval from SEBI, individuals and partnership firms, are required to pay a registration fee of Rs. 3,000, to get the Certificate of Registration.<\/li>\n<li>In case of a body corporate or limited liability partnership firm, the said registration fee is of Rs. 15,000.<\/li>\n<li>Once such fees are received by SEBI, they will grant the Certificate of Registration to the respective applicant.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"PROCESS_OF_REGISTRATION_UNDER_REGISTERED_INVESTMENT_ADVISOR\"><\/span><span style=\"color: #000080;\"><strong>PROCESS OF REGISTRATION UNDER REGISTERED INVESTMENT ADVISOR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are two options for filing application for getting registration under SEBI for an investment advisor. One is online mode, while the other one is offline mode. In the offline mode, the application form is required to be submitted at SEBI\u2019s Head office or at any regional or local office in their nearby location.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"OFFLINE_PROCESS_OF_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>OFFLINE PROCESS OF REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong><span style=\"color: #993366;\">STEP-1<\/span> : <\/strong>The applicant must make an application to SEBI in Form A, provided in the Regulations along with all the necessary supporting documents.<\/p>\n<p><strong><span style=\"color: #993366;\">STEP-2 :<\/span> <\/strong>the applicant needs to submit the application with the requisite fees. After the receipt of the application for investment advisor registration, the applicant generally receives the reply from SEBI within one month. However, such a time period varies on different circumstances regarding the fulfilment of registration requirements, including the information provided.<\/p>\n<p><span style=\"color: #993366;\"><strong>STEP-3 : <\/strong><\/span>The applicant should ensure that he falls within the definition of an investment advisor as provided in SEBI regulations and be eligible to be an investment advisor. Such clarifications would help in fast processing of the application.<\/p>\n<p><strong><span style=\"color: #993366;\">STEP-4<\/span> : <\/strong>The applicant should mention the type of registration made on the cover letter of the post carrying application form and documents. Where the applicant is an existing investment advisor, then provide the details of investment advice provided under the application for registration under previous regulations. Otherwise, in case of a new advisor, mention the same.<\/p>\n<p><strong><span style=\"color: #993366;\">STEP-5 :<\/span> <\/strong>The application be supported with duly filled Form A, and the same be properly signed and stamped by the applicant. Also, the requisite application fee applicable on the class of applicant, in the form of a bank draft and the same be in favour of \u201cThe Securities and Exchange Board of India\u201d, payable at Mumbai.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ONLINE_MODE_OF_REGISTRATION\"><\/span><span style=\"color: #000080;\"><strong>ONLINE MODE OF REGISTRATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #ff6600;\"><strong>STEP-1 : <\/strong><\/span>The applicant needs to visit the SEBI intermediary portal of SEBI\u00a0and select the self-Registration menu.<\/p>\n<p><span style=\"color: #ff6600;\"><strong>STEP-2 : <\/strong><\/span>An application form will appear. The applicant needs to complete the application form by filling all the details and then click on proceed.<\/p>\n<p><span style=\"color: #ff6600;\"><strong>STEP-3 : <\/strong><\/span>After successful filing of application, the portal will redirect to a payment gateway and the applicant would have to gay the required application fee, using the online payment modes available on the gateway.<\/p>\n<p><span style=\"color: #ff6600;\"><strong>STEP-4 : <\/strong><\/span>After successful payment, the applicant will receive an acknowledgement mail from the department<\/p>\n<p><span style=\"color: #ff6600;\"><strong>STEP-5 : <\/strong><\/span>The applicant can use the acknowledgment number and the login credentials to track their application and to know their status.<\/p>\n<p><span style=\"color: #ff6600;\"><strong>STEP -6 : <\/strong><\/span>In case of incomplete application, the applicant is required to complete the same within 14 days from the receipt of mail. In case of failure, the applicant stands cancelled and the application fee will not be refunded.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GRANTING_OF_CERTIFICATE\"><\/span><span style=\"color: #000080;\"><strong>GRANTING OF CERTIFICATE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SEBI after receiving an application for registration as an investment advisor, scrutinize the application and supporting documents. In case the same is found true and fair, and they are satisfied that the applicant fulfils all the required conditions, they shall inform the applicant regarding the same and ask the applicant for making the payment of registration fees.<\/p>\n<p>On receiving the registration fees, as applicable, the <a href=\"https:\/\/carajput.com\/blog\/category\/sebi\/\">SEBI<\/a> shall issue the Certificate of Registration to the said applicant.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"POST-REGISTRATION_COMPLIANCES\"><\/span><span style=\"color: #000080;\"><strong>POST-REGISTRATION COMPLIANCES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>After successful registration, the Investment Advisor is under the obligation to comply with the reporting requirements as specified by SEBI.<\/li>\n<li>Also, the must regularly check the SEBI website for getting any updation or circulars or guidelines issued from SEBI.<\/li>\n<li>In case there is any material change in details already furnished with SEBI, they are required to comply with the new guidelines and shall intimate the SEBI within a reasonable period of time.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"BAN_ON_FREE_TRIAL_SERVICES\"><\/span><span style=\"color: #000080;\"><strong>BAN ON FREE TRIAL SERVICES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Another thing coming up in the market was free trial services by investment advisors, to prove their expertise and attract greater attention of investors. But <a href=\"https:\/\/carajput.com\/blog\/category\/sebi\/\">SEBI<\/a> came up with some new guideline, which are as follows \u2013<\/p>\n<ol>\n<li>With effect from 1<sup>st<\/sup> January, 2020, new measures were announced by SEBI, to enhance the conduct of registered investment advisors.<\/li>\n<li>As per the guidelines, the registered investment advisors were banned from giving free trials of services to their customers or accepting part payments for in exchange for their services.<\/li>\n<li>Along with this, such registered investment advisors can only provide advice after conducting risk profiling of clients. They are also required to display complaints against them on their own websites and can accept payments only through banking channels.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"CHANGES_IN_FEE_STRUCTURE\"><\/span><span style=\"color: #000080;\"><strong>CHANGES IN FEE STRUCTURE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SEBI provided some relief to upcoming investment advisors by reducing the fees of application and registration.<\/p>\n<table style=\"height: 456px;\" width=\"807\">\n<tbody>\n<tr>\n<td rowspan=\"2\" width=\"193\"><span style=\"color: #000080;\"><strong>TYPE OF APPLICANT<\/strong><\/span><\/td>\n<td colspan=\"2\" width=\"234\"><span style=\"color: #000080;\"><strong>APPLICATION FEES (INR)<\/strong><\/span><\/td>\n<td colspan=\"2\" width=\"261\"><span style=\"color: #000080;\"><strong>REGISTRATION FEES (INR)<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><span style=\"color: #000080;\"><strong>OLD RATE<\/strong><\/span><\/td>\n<td width=\"111\"><span style=\"color: #000080;\"><strong>NEW RATE<\/strong><\/span><\/td>\n<td width=\"132\"><span style=\"color: #000080;\"><strong>OLD RATE<\/strong><\/span><\/td>\n<td width=\"129\"><span style=\"color: #000080;\"><strong>NEW RATE<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"193\"><strong>INDIVIDUALS<\/strong><\/td>\n<td width=\"123\">5000<\/td>\n<td width=\"111\">2000<\/td>\n<td width=\"132\">10000<\/td>\n<td width=\"129\">3000<\/td>\n<\/tr>\n<tr>\n<td width=\"193\"><strong>PARTNERSHIP FIRMS<\/strong><\/td>\n<td width=\"123\">5000<\/td>\n<td width=\"111\">2000<\/td>\n<td width=\"132\">10000<\/td>\n<td width=\"129\">3000<\/td>\n<\/tr>\n<tr>\n<td width=\"193\"><strong>COMPANY<\/strong><\/td>\n<td width=\"123\">25000<\/td>\n<td width=\"111\">10000<\/td>\n<td width=\"132\">500000<\/td>\n<td width=\"129\">15000<\/td>\n<\/tr>\n<tr>\n<td width=\"193\"><strong>LIMITED LIABILITY PARTNERSHIP<\/strong><\/td>\n<td width=\"123\">25000<\/td>\n<td width=\"111\">10000<\/td>\n<td width=\"132\">500000<\/td>\n<td width=\"129\">15000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Apart from this, there was a significant reduction in renewal fees for registration. The change was a follow &#8211;<\/p>\n<table style=\"height: 429px;\" width=\"813\">\n<tbody>\n<tr>\n<td rowspan=\"2\" width=\"282\">\n<h3><span class=\"ez-toc-section\" id=\"TYPE_OF_APPLICANT\"><\/span><span style=\"color: #000080;\"><strong>TYPE OF APPLICANT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td colspan=\"2\" width=\"341\">\n<h3><span class=\"ez-toc-section\" id=\"RENEWAL_FEES_INR\"><\/span><span style=\"color: #000080;\"><strong>RENEWAL FEES (INR)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<h3><span class=\"ez-toc-section\" id=\"OLD_RATE\"><\/span><span style=\"color: #000080;\"><strong>OLD RATE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"161\">\n<h3><span class=\"ez-toc-section\" id=\"NEW_RATE\"><\/span><span style=\"color: #000080;\"><strong>NEW RATE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"282\"><strong>INDIVIDUALS<\/strong><\/td>\n<td width=\"180\">10000<\/td>\n<td width=\"161\">1000<\/td>\n<\/tr>\n<tr>\n<td width=\"282\"><strong>PARTNERSHIP FIRMS<\/strong><\/td>\n<td width=\"180\">10000<\/td>\n<td width=\"161\">1000<\/td>\n<\/tr>\n<tr>\n<td width=\"282\"><strong>COMPANY<\/strong><\/td>\n<td width=\"180\">500000<\/td>\n<td width=\"161\">5000<\/td>\n<\/tr>\n<tr>\n<td width=\"282\"><strong>LIMITED LIABILITY PARTNERSHIP<\/strong><\/td>\n<td width=\"180\">500000<\/td>\n<td width=\"161\">5000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>It is to be noted that the registration certificate is valid for a period of 5 years and the application for renewal along with the requisite fees will be made within 3 months of the date of the expiry of 5 years\u2019 time period.<\/p>\n<p><strong>For details refer to the circular:<\/strong><\/p>\n<p><strong><a href=\"https:\/\/carajput.com\/press-releases\/sebi-has-extended-the-date-from-30-june-to-15-sept-2020-for-filing-of-financial-results.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">SEBI has extended the date from 30 June to 15 Sept 2020 for the filing of financial results<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/carajput.com\/archives\/amendments-in-sebi-listing-obligations-and-disclosure-requirements-regulations-2015.pdf\">Amendments in SEBI -Listing Obligations and Disclosure Requirements Regulations 2015<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><span style=\"color: #000080;\"><strong>CONCLUSION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In India, we take up the services of lawyers, doctors, etc. and pay a fee for their advice, but we are not in the habit of paying fees or charges to Investment Advisors. The reason for this, could be lack of awareness due to indirect fee structure. But, where the investment involves lifetime savings and financial goals, taking professional investment advice with minor fees is a wise decision. The investment advisors registered with SEBI thoroughly understand the investor\u2019s risk profile and their investment goals before giving any investment advice.<\/p>\n<p>Also Read<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/apeda-rcmc-registration-meaning-benefits-documents-required-and-so-on-for-an-apeda-license\/\">Application for APEDA (RCMC) Registration<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>INVESTMENT ADVISOR REGISTRATION INTRODUCTION An investment advisor commonly known as a stockbroker, is a person or group of persons, making recommendations for investors and conducting various securities analysis, through direct management of clients\u2019 assets or written publications and receive their fees in return. Securities and Exchange Board of India introduced a new concept of Investment &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[9911],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12346"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=12346"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12346\/revisions"}],"predecessor-version":[{"id":22069,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12346\/revisions\/22069"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=12346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=12346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=12346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}