Who are Investment Advisors?
Obligations and responsibilities of Investment Advisors
2)They bear the responsibility of not divulging any confidential information.
3)They should abide by code of conduct as specifies.
4)They should conduct risk profiling and risk assessment of the investor
5)It is their duty to ensure that investments should be suitable and appropriate to the risk profile of their client.
6)Written records should be maintained for a period of 5 years.
7)Proper system and procedure should be maintained for redressing grievances of clients.
Post Registration compliances
2)They must have to regularly visit SEBI website for any updation/circulars/ guidelines issued time to time with respect to their market.
3)They must intimation to SEBI any material change in the details which has been already furnished to SEBI within a reasonable period of time.
-Body Corporate (including LLPs)
But before becoming of an Investment advisor it is mandatory for them to get themselves registered with SEBI (Investment Advisors) Regulations, 2013.
2) On the receipt of application, Board may require the applicant to furnish more documents or can also ask for any kind of clarification by calling them. The total time for its registration totally depends on how they fulfill all the requirements and provide all information in all respects.
3)Before gentaing of the certificate board will consider that whether an applicant is an individual or a Body corporate, and in case applicant is individual then he must possess the following qualification-
-A professional qualification or postgraduate degree or post graduate diploma in finance, accountancy, Business management, commerce, economics, capital marketing, banking, insurance or an institution recognized by the Central Government or State Government, or a Foreign institution or university or association.
- A graduate in any discipline with an experience of at least five years in activities related to advice in financial products or securities or fund or assets or portfolio management.
-Or other requirements as specified in regulation 7.
4. Whereas in case applicant is a Body corporate or LLP, then all those who provide investment advice must be a qualified professional as specified in regulation 7.
5. Applicant should fulfill the capital adequacy requirement as specified in regulation 7, that a Body corporate shall not be having net worth not less than 25 lakhs, whereas in case of an individual net worth should not be less than INR 1 Lakh.
6. Once the Board is satisfied that the applicant complies with all the requirements as specified in regulations, shall send the intimation to the applicant and on receipt of fees in case of individual and firms Rs. 10,000 and in case of Body Corporate including LLP Rs. 5,00,000/-.
After all the requirements Board will grant the certificate in form B as specified in regulations. It remains valid unless it shall be cancelled or suspended.