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SEBI Issues Stern Warning to Unregistered Investment Advisors – Are You Compliant?

  • 26-Jun-2025
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⚠️ SEBI Issues Stern Warning to Unregistered Investment Advisors – Are You Compliant?

The Securities and Exchange Board of India (SEBI) has recently issued a strong warning to unregistered investment advisors. If you're offering financial advice for a fee—without being registered—you could be putting yourself at serious legal and financial risk.

Many financial professionals in India continue to provide paid investment guidance without proper SEBI registration, knowingly or unknowingly. But here's the truth: If you're advising clients on securities for a fee, you MUST be registered with SEBI. No exceptions.

Why SEBI Registration Matters

SEBI’s regulations are designed to protect investors from unqualified or unethical advice. Operating without registration isn't just non-compliant—it's illegal. SEBI has already begun cracking down on violators, and the penalties can be severe.

Whether you're an independent advisor or part of a firm, it's time to ensure you're playing by the rules.

✅ How to Become a SEBI Registered Investment Advisor (RIA)

Here’s a quick checklist to determine if you're eligible to register as an RIA:

🎓 Educational Qualifications:

  • A Bachelor’s degree in Finance, Commerce, CA, CFA, MBA, or a related field.

📝 Certification Exams:

  • Pass the NISM Series X-A and X-B exams (Investment Adviser Levels 1 & 2).

👨‍💼 Experience:

  • Minimum 2 years’ experience for individuals.

  • Minimum 5 years’ experience for firms.

💰 Net Worth:

  • ₹5 lakhs for individuals.

  • ₹50 lakhs for firms.

📑 Compliance Systems:

  • Robust compliance and recordkeeping frameworks are a must.

🔍 Background Check:

  • No history of regulatory violations.

  • A clean CIBIL score is essential.

🚫 Don’t Risk It – Get Registered

Ignoring SEBI guidelines isn't worth the risk. From heavy penalties to reputational damage, the consequences of operating without registration can derail your entire advisory career.

✅ We Can Help – End-to-End RIA Registration & Compliance Support

Navigating SEBI regulations can be overwhelming, but you don’t have to do it alone. Our team simplifies the entire process—from documentation and registration to setting up compliant systems and providing ongoing support.

📞 Contact us for a FREE consultation
+91 93113 47006

Take the first step toward a fully compliant and thriving advisory practice—because staying unregistered is no longer an option.

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