The Securities and Exchange Board of India (SEBI) came out with the Investment Advisor Regulations 2013 on January 21, 2013. These regulations came into force from April 21, 2013.
- Who is an “Investment Advisor”?
Any person who for consideration is engaged in the business of providing “investment advice” to clients whether Individual Clients, Group of Clients or any Person or calls himself as Investment Advisor whatever the constitution of the Person may be.
It has been 6 years and there are 1093 registered investment advisors as on January 3, 2019.
Earlier, as per the regulations, the certificate of registration for Investment Advisor was valid for five years from the date of issue.
SEBI on December 18, 2016 published SEBI (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016.
As per the amended Regulations, the registration for Investment Advisor and various other intermediaries is “till it is suspended or cancelled by the Board” instead of for 5 years only.
This means that Investment Advisor have been granted permanent registration by SEBI subject to payment of fees.
As per the amended Regulations, the word “renewal” is omitted throughout the SEBI (Investment Advisor) Regulations and SEBI (Research Analyst) Regulations, the IAs and RAs have been granted permanent registration by SEBI subject to payment of fees. The procedure for renewal and submission of application for renewal of certificate has been done away with.
However, Investment Advisor or Research Analyst, who is already registered, has to pay following fees every 5 years from the date of grant of registration “to keep the registration in force”.
The first set of RIAs who got their registration in 2013 itself, are due for renewal.
The important point to note is that the renewal has to be done within 3 months of the expiry of your current registration.
So, how do you renew your registration?
The good news is that submission of application for renewal of registration has been done away with.
All that you need to so is to pay your renewal fees and inform SEBI about the same.
Here is the quick procedure to renew SEBI Investment Advisor Registration.
Step 1 – Login to portal and pay fee :
- Access your login on the SI portal of SEBI.
- Go to the renewal option.
- Pay renewal fees through NEFT / RTGS / Demand Draft.
- Enter your payment details.
- The following is the schedule for fees -
Individuals and partnership firms
Companies and limited Liability Partnerships (LLPs)
Step 2 – Communication with SEBI :
You can inform SEBI through an email or by sending a letter to SEBI informing about payment of fees for renewal of registration.
You also have to surrender the original certificate of registration. The certificate has to be sent to SEBI’s regional office near you.
Step 3 – Issue of new certificate :
Once SEBI confirms receipt of renewal fees and the certificate, it will issue a fresh certificate to you.
Remember, you have to renew your registration within 3 months before the expiry of the due date. In other words renewal fees should be paid within that period.
Key points :
- The certificate of registration remains valid for five years or till suspended.
- Investment Advisor have been granted permanent registration by SEBI subject to payment of fees.
Investment Advisor has to apply for renewal of its registration certificate to SEBI, atleast 3 months before the expiry of the validity of the certificate, if it wishes to continue as a registered investment advise
-By Arnab Sarkar