September 23, 2012

SEBI Investment Advisor Regulations – The Draft

Sadique Neelgund

Kindly click on the link below to download the draft;


The Draft – SEBI Investment Advisor Regulations


Thanks to IFA Galaxy for sharing this draft on their Google Groups.

8 Thoughts to “SEBI Investment Advisor Regulations – The Draft”

  1. jainamitonline says:

    If anyone wants to start financial planning practice, how can he have 5 yrs of experience ?

    This rule is confusing.

    • sureshcfp says:

      Dear Amit,

      If you are PG and CFP, then there is no need of having of 5 yrs experience. Experience criteria is only for graduate.

      Please re-read the following criteria.

      An individual or a partner or a Representative of a body corporate offering
      investment advice shall;
      6.1.1. have a post graduate degree or diploma in finance, accountancy, business
      management, commerce, economics, capital market, banking, insurance or
      actuarial or be a graduate in any discipline with an experience of at least five
      years in activities relating to advice in financial products or fund or asset or
      portfolio management.
      6.1.2. Obtain a certification on Financial Planning or fund or asset management
      or investment advisor if provided by NISM or FPSB, or any such certification
      from an institution accredited by NISM.
      Existing investment advisors will be given two years time to obtain such

      • Nayan Shah says:

        As far as CFP is concerned, it is clearly included. But disheartning fact is that they have denied to earn any commission from any product manufacturer. 

        So, now it is responsiblity of SEBI also to wave message to Indian Investment community that there are really some ppl (qualified, educated & experienced) to give you wise advice on payment. 

        Irony, Advisor are banned to take commission, rather Mutual Fund distributors are not banned to get some extra money (service charge etc) from Investor over & above commission from AMC. 

        So, if someone finds it difficult to work as ADVISOR and charge fee, they can work only as distributor (but with good knowledge-that will be the main difference with other distributor community). 



  2. sonyjosephvt says:

    This is a very positive draft.Ut protects the clients' interests and avoid fake practice.

    All Developed countries are having such regulation.

    It is little late in India.Even though,it is better than never…….

  3. Guys

    It might be a little early to really make conclusions .

    Monika Halan on twitter has shared that "Sebi contact says advisor regulation not ready yet. Will be announced post board meeting. Versions on the net may or may not be true." .

  4. AnkurCh says:

    Had a little confusion on advising & execution part. If I am empanneled with an online platform for investments and just enabling my clients to register in the platform so that being an advisor I can monitor the performance. But this is purely an option to my clients. Now, I am not actually doing any execution related formalities. The online platfom provider is handling all the stuff and formalities, communications and investment execution. I am just in loop in the email communications. In this case, will it be considered that I am providing execution service. Technically I am just monitoring and the platform provider is providing the execution services.

    Secondly, in tangible asset limit of 5 lakhs. what can be probable inclusion? I presume that to be property, furniture, PC, printer etc. But if I operate from home and that too a rented one as of now, then, what to have in that limit? Property can single handadly carry that limit but equipment & all I don't think can touch that 5 lakh limit for an individual advisor.

    Please advice!  

    • Nayan Shah says:

      I am also in the same confusion. They are rather using net tangible assets. If the house is rented, then it will be really tough to go thru this criteria. But even if owned, but via loan, that loan amount should be deducted to arrive net value of property.

      If rented, really difficult to go through this criteria. Let's hope something good for us. Only Intellectual property should hold good. 

      No doctor or CA are told to have some net worth to start practice. Really SEBI going hard. 

  5. Naveen Kumar says:

    I am not cfp certified, but I am a MBA finance and I have post graduate diploma in finance, am I eligible to carry out this profession with this qualification.

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