Someone offers to tell you where to put your money. Is this person even allowed to advise you?

India has a specific rule book for this. It is the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 ("the Regulations"). This article explains, in plain words, who needs to be registered, who does not, and what a registered adviser must tell you. It describes the rules as amended up to 25 November 2025, the latest amendment on the copy we reviewed. It does not recommend any product, and it is not advice to invest in anything.

## The basic rule: no registration, no advisory business

The core rule sits in regulation 3(1). No person shall act as an investment adviser, or hold himself out as an investment adviser, unless he has obtained a certificate of registration from the Board (reg. 3(1), SEBI (Investment Advisers) Regulations, 2013). "The Board" here means SEBI, the securities market regulator.

There are two limbs: acting as an investment adviser, and holding oneself out as one. Each needs the certificate.

The registration is applied for in Form A, with a non-refundable application fee (reg. 3(2), SEBI (Investment Advisers) Regulations, 2013). Once granted, it comes as a certificate in Form B for an investment adviser, or Form C for a part-time investment adviser (reg. 9, SEBI (Investment Advisers) Regulations, 2013). The certificate stays valid until the Board suspends or cancels it (reg. 10, SEBI (Investment Advisers) Regulations, 2013).

The certificate carries a registration number in the form "IN/IA/" followed by digits (Form B, First Schedule, SEBI (Investment Advisers) Regulations, 2013). That number is the first thing to look for.

## What counts as "investment advice"

The Regulations define investment advice as advice relating to investing in, purchasing, selling or otherwise dealing in securities, and advice on an investment portfolio containing securities. It can be written, oral or by any other means, given for the benefit of the client. The definition says it "shall include financial planning" (reg. 2(1)(l), SEBI (Investment Advisers) Regulations, 2013).

Two carve-outs are written into the same definition:

- Advice given through newspapers, magazines, or an electronic, broadcasting or telecommunications medium, which is widely available to the public, is not treated as investment advice for these Regulations (first proviso to reg. 2(1)(l)).
- Trading calls are not treated as investment advice for these Regulations (second proviso to reg. 2(1)(l), inserted with effect from 16 December 2024). "Trading calls" have the meaning given in the SEBI (Research Analysts) Regulations, 2014, as reg. 2(1)(u) provides.

So a general article in a newspaper is not "investment advice" under this definition, but a personal recommendation to you on what to buy or sell, or a financial plan built for you, is.

## Who is an "investment adviser"

An investment adviser is any person who, for consideration, is engaged in the business of providing investment advice to clients or other persons or groups of persons. The definition also takes in a part-time investment adviser and any person who holds out himself as an investment adviser, by whatever name called (reg. 2(1)(m), SEBI (Investment Advisers) Regulations, 2013).

Two words matter here.

**"For consideration."** The rules are aimed at advice given for a fee or other payment, as a business.

**"Part-time."** A part-time investment adviser is an individual or a firm that provides advice for consideration and is also engaged in some other business activity or employment (reg. 2(1)(qa), SEBI (Investment Advisers) Regulations, 2013). Such a person is registered under Form C (reg. 9). Being part-time does not mean being unregistered.

## The name test: IFA, wealth adviser and similar titles

Regulation 3(3) closes a common loophole. No person, while dealing in distribution of securities, shall use the name "Independent Financial Adviser", "IFA", "Wealth Adviser" or any other similar name unless registered with the Board as an investment adviser (reg. 3(3), SEBI (Investment Advisers) Regulations, 2013).

So if a mutual fund or securities distributor's card says "IFA" or "Wealth Adviser", that is a reason to ask for the SEBI investment adviser registration number. 

## Who does not need to register

Regulation 4 lists persons who "shall not be required to seek registration" under regulation 3, subject to the conditions stated for each. The list matters, because many of the people you will meet are on it.

1. **General comments.** Anyone who gives general comments in good faith about trends in the financial or securities market or the economic situation, where the comments do not specify any particular securities or investment product (reg. 4(a)).
2. **Insurance agents and brokers.** An insurance agent or broker who offers investment advice solely in insurance products and is registered with the Insurance Regulatory and Development Authority for that activity (reg. 4(b)).
3. **Pension advisers.** A pension advisor who advises solely on pension products and is registered with the Pension Fund Regulatory and Development Authority for that activity (reg. 4(c)).
4. **Mutual fund distributors.** A distributor of mutual funds who is a member of a self-regulatory organisation recognised by SEBI, or registered with an association of asset management companies of mutual funds, giving advice to clients that is incidental to the primary activity (reg. 4(d)).
5. **Advocates, solicitors and law firms.** Advice to their clients incidental to their legal practice (reg. 4(e)).
6. **Professional bodies.** A member of the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, the Institute of Cost and Works Accountants of India, the Actuarial Society of India, or any other professional body the Board specifies, who gives advice to clients incidental to his professional service (reg. 4(f)).
7. **Certain registered intermediaries.** A stock broker registered under the SEBI (Stock Brokers) Regulations, 1992, a portfolio manager registered under the SEBI (Portfolio Managers) Regulations, 1993, or a merchant banker registered under the SEBI (Merchant Bankers) Regulations, 1992, giving advice to clients incidental to their primary activity (reg. 4(g)). This clause was amended with effect from 25 November 2025. These intermediaries must still follow the general obligations in Chapter III (first proviso to reg. 4(g)).
8. **Fund managers.** A fund manager, by whatever name called, of a mutual fund, alternative investment fund or any other intermediary or entity registered with the Board (reg. 4(h)).
9. **Clients outside India.** A person who gives advice exclusively to clients based out of India. But advice to a Non-Resident Indian or Person of Indian Origin falls within the Regulations (reg. 4(i) and its proviso).
10. **Staff of a registered adviser.** The principal officer, persons associated with advice, and partner of a registered investment adviser, who must comply with regulation 7 (reg. 4(j)).
11. **Others the Board specifies** (reg. 4(k)).

Read the exemptions for what they say. Most carry the word "incidental" or "solely", and the list opens by making each exemption subject to the conditions stipulated for it.

## The accountant question

Because this site is written by a chartered accountant firm, one point should be stated plainly. Regulation 4(f) covers a member of the Institute of Chartered Accountants of India who provides investment advice to his clients, incidental to his professional service. The text states no exemption beyond advice of that kind.

Readers should not take this article, or the other tax and compliance material on this site, as investment advice or as an invitation to seek it from us. It explains what the regulations say so that you can judge advisers properly.

## How to check an adviser, as far as the rules go

Here is a short, practical test built from the Regulations.

1. **Ask for the registration number.** A registered investment adviser holds a certificate that carries a number starting "IN/IA/" (Form B, First Schedule). A part-time adviser holds one in Form C (reg. 9).
2. **Match the person to the certificate.** The certificate is granted to a named person. Check that the name on the certificate is the person or firm actually advising you, and not a relative or a brand name.
3. **Check whether an exemption could apply.** If the person says "I don't need registration", ask which clause of regulation 4 applies. If the answer is not one of the eleven categories above, be cautious.
4. **Check the title.** If the card says IFA or Wealth Adviser, regulation 3(3) says the person must be a registered investment adviser.

The Regulations do not describe the screen where you can look up a registration. Use SEBI's own website for its register of intermediaries; we have not reviewed that page for this article.

## What a registered adviser must do for you

Registration brings duties. Knowing them helps you spot a bad adviser even when he is registered.

- **Fiduciary duty.** An investment adviser shall act in a fiduciary capacity towards its clients and shall disclose all conflicts of interest as and when they arise (reg. 15(1), SEBI (Investment Advisers) Regulations, 2013). "Fiduciary" means he must put your interest ahead of his own.
- **No commission from the product maker.** An adviser shall not receive any consideration, by way of remuneration, compensation or in any other form, from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided (reg. 15(2)). The client pays for the advice. The fund house or product seller does not.
- **Separation from other business.** An adviser who also does other activities must keep investment advisory services clearly segregated from them (reg. 15(4)).
- **Disclosure before you sign up.** The adviser shall disclose to a prospective client all material information about itself, including its business, disciplinary history, the terms and conditions on which it offers advisory services, and its affiliations with other intermediaries (reg. 18(1)).
- **Disclosure of own holdings.** The adviser shall disclose to the client its holding or position, if any, in the financial products or securities which are the subject matter of the advice (reg. 18(4)).
- **Disclosure of conflicts and risks.** It must disclose actual or potential conflicts of interest from any connection with an issuer of products or securities (reg. 18(5)). It must also disclose the key features of the products, particularly performance track record (reg. 18(6)), and draw attention to warnings and disclaimers in the product's documents (reg. 18(7)).
- **Products outside SEBI's reach.** If the adviser advises on products or services outside the purview of the Board, he must tell you that these products and his advice on them are outside SEBI's regulatory purview and that no recourse from the Board is available for any grievance arising from them (reg. 18(8)).
- **Use of artificial intelligence.** The adviser must disclose the extent of use of Artificial Intelligence tools in providing investment advice (reg. 18(9)).
- **Fees.** An adviser is entitled to charge fees for providing investment advice from a client, in the manner specified by the Board (reg. 15A). The Code of Conduct in the Regulations adds that fees are subject to any ceiling the Board specifies and must be fair and reasonable. No rupee figure appears in the text we reviewed, so check the current fee rules with SEBI and get the fee terms in writing before you agree.

## What to do now

- **Next step:** before you act on any paid advice, ask the adviser for the SEBI registration number and the clause of regulation 4 relied on (reg. 3(1) and reg. 4, SEBI (Investment Advisers) Regulations, 2013).
- **Timing:** do this before you pay or transfer any money, because the registration requirement applies to "acting as" an adviser from the start (reg. 3(1)).
- **Consequence of skipping this:** you may deal with someone who is not allowed to advise. The fiduciary and disclosure duties in Chapter III are placed on an investment adviser (regs. 15 and 18).

Have a CA review your facts before you act or file.

## Frequently asked questions

**Can my chartered accountant give me investment advice?**
Only within the exemption in regulation 4(f), which covers advice incidental to his professional service. A separate, paid advisory business needs registration (reg. 3(1) and reg. 4(f), SEBI (Investment Advisers) Regulations, 2013).

**Does my mutual fund distributor need to be an investment adviser?**
Not for advice incidental to distribution, if he fits regulation 4(d). But he cannot call himself an IFA or Wealth Adviser unless registered (reg. 3(3)).

**Is a stock tip on YouTube or WhatsApp covered?**
Advice widely available to the public through newspapers, electronic or broadcast media is carved out of the definition, and trading calls are carved out too (provisos to reg. 2(1)(l)). Whether a particular channel is covered depends on the facts. A person who charges and holds himself out as an adviser is still covered by regulation 3(1).

**What if an unregistered person advises me and I lose money?**
The Regulations do not set out a refund process. They set out duties for registered advisers (regs. 15 and 18). Speak to a lawyer, and use SEBI's own complaint channels, which are not part of the text we reviewed.

**Does the adviser have to tell me if AI produced the advice?**
Yes, he must disclose the extent of use of Artificial Intelligence tools in providing investment advice (reg. 18(9)).

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