The Securities and Exchange Board of India (SEBI) regulates Investment Advisers under the SEBI (Investment Advisers) Regulations, 2013, with significant amendments introduced in December 2024. For corporate entities (body corporates and LLPs) seeking registration as Investment Advisers, the regulatory framework has been streamlined with notable changes to qualification requirements and the replacement of net worth requirements with deposit-based requirements.
Fee Structure for Corporate Investment Advisers
SEBI Fees (Payable to SEBI)
| Fee Type | Amount (₹) |
| Application Fee | ₹10,000 |
| Registration Fee | ₹15,000 |
| Renewal Fee (every 5 years) | ₹5,000 |
BSE IAASB Membership Fees (Payable to BSE Limited)
BSE Limited has been recognized as the Investment Adviser Administration and Supervisory Body (IAASB) since July 25, 2024, for a period of five years. All applicants must obtain IAASB membership before applying to SEBI.
| Fee Type | Amount (₹) |
| New Membership Fee (Body Corporate/LLP) | ₹3,00,000 |
| Renewal Membership Fee | ₹2,97,000 |
Initial Registration Cost Breakdown for SEBI Investment Adviser (Corporate/LLP) – Total ₹4.25 Lakh
Capital/Deposit Requirements (Post-December 2024 Amendment)
The SEBI (Investment Advisers) (Second Amendment) Regulations, 2024, notified on December 16, 2024, replaced the net worth requirement with a deposit-based system. The deposit must be maintained with a scheduled bank and marked as lien in favor of IAASB (BSE Limited).
| Number of Clients | Deposit Amount (₹) |
| Up to 150 clients | ₹1,00,000 |
| 151 to 300 clients | ₹2,00,000 |
| 301 to 1,000 clients | ₹5,00,000 |
| 1,001 and above clients | ₹10,00,000 |
As of August 2025, SEBI has permitted Investment Advisers to use liquid mutual funds or overnight mutual funds as an alternative to bank fixed deposits for meeting the deposit requirement. The compliance deadline has been extended to September 30, 2025.
Previous Net Worth Requirement (Before December 2024)
Prior to the amendment, body corporates and LLPs were required to maintain a minimum net worth of ₹25,00,000 (₹25 lakh) at all times.
Total Initial Investment for Corporate Registration
The minimum initial investment for registering as a Corporate Investment Adviser:
| Component | Amount (₹) |
| SEBI Application Fee | ₹10,000 |
| SEBI Registration Fee | ₹15,000 |
| BSE IAASB Membership Fee | ₹3,00,000 |
| Minimum Deposit | ₹1,00,000 |
| Total Minimum | ₹4,25,000 |
Eligibility and Qualification Requirements
Educational Qualification (Updated November 2025)
SEBI has recently relaxed qualification requirements:
- Current Requirement: A graduate degree in any discipline from a recognized university (Indian or foreign), OR a CFA Charter from the CFA Institute
- Previous Requirement: Graduate/postgraduate degree specifically in finance, accountancy, business management, commerce, economics, capital markets, banking, or insurance
NISM Certification (Mandatory)
Regardless of educational background, the Principal Officer and Persons Associated with Investment Advice (PAIA) must pass both levels of NISM certification:
- NISM-Series-X-A: Investment Adviser (Level 1) Certification
- NISM-Series-X-B: Investment Adviser (Level 2) Certification
Fit and Proper Criteria
The applicant, its directors, and key personnel must satisfy SEBI’s “fit and proper” criteria, which includes no history of fraud, defaults, or regulatory violations.
Step-by-Step Registration Process
The registration process involves applying through the BSE Membership Portal (membershipraia.bseindia.com):
Step 1: Ensure Eligibility
Verify that the entity meets all qualification and certification requirements for the Principal Officer and compliance structure.
Step 2: Obtain IAASB Membership
Apply for BSE IAASB membership through the BSE portal and pay the membership fee of ₹3,00,000.
Step 3: Submit Application to SEBI
Complete Form A on the SEBI Intermediary Portal (siportal.sebi.gov.in) with all required documents and pay the application fee of ₹10,000.
Step 4: SEBI Review and Clarifications
SEBI reviews the application (typically 2-6 months) and may request additional documents or clarifications.
Step 5: Pay Registration Fee
Upon approval intimation from SEBI, pay the registration fee of ₹15,000 within 15 days.
Step 6: Maintain Deposit
Establish the required deposit (minimum ₹1 lakh) with a scheduled bank or through liquid/overnight mutual funds under lien to IAASB.
Step 7: Receive Certificate
SEBI issues the Certificate of Registration, and the entity can commence investment advisory services.
Key Documents Required
For corporate applicants, the following documents are typically required:
- Certificate of Incorporation/Registration
- Memorandum and Articles of Association
- PAN Card of the entity
- Board Resolution authorizing the application
- Details of directors and shareholders
- NISM Certification of Principal Officer and PAIA
- Graduate degree certificates of key personnel
- Deposit certificate (bank FD or MF units under lien)
- Office address proof
- Business plan and compliance procedures
- Website details (mandatory for IAs)
Important Compliance Obligations
Ongoing Requirements
- Annual Compliance Audit: Mandatory audit to be conducted annually
- Website Maintenance: Functional website with prescribed disclosures by June 30, 2025 deadline
- Record Keeping: Maintain records for 5 years
- Fee Cap: Maximum fee of ₹1,51,000/year per family (fixed fee mode) or 2.5% of AUA
- Client Level Segregation: Separation of advisory and distribution activities at family/group level
Transition Requirements for Individual IAs
Individual Investment Advisers must transition to non-individual status when they exceed 300 clients at any point or collect fees exceeding ₹3 crore in a financial year.
Recent Regulatory Updates (2025)
- November 2025: Educational qualification criteria relaxed to allow graduates from any discipline
- August 2025: Liquid and overnight mutual funds permitted for deposit compliance
- June 2025: Consolidated Master Circular issued for Investment Advisers
- January 2025: Detailed guidelines issued for implementation of December 2024 amendments
