How to start as an Independent Stock Investment Advisor in India ? | Stock Tip Advisor | SEBI Guide

How to start as an Independent Stock Investment Advisor in India ? | Stock Tip Advisor | SEBI Guide

Stock Market analysis and stock market investments have attracted a few sections of the society. People follow the business news and feel interested in mapping their predictions with market trends. While its a passion for few people, it is a hobby for some others. Investments in Stock market has a different story to tell. Giving a professional touch to your passion or hobby can help you establish yourself as a good businessman in the market.

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Hmm….thinking of how to start your own stock investment advisory business in India? Have you been dreaming of it for long and don’t know where to start? Here are 8 simple steps that could help you start realizing your dream!

As per SEBI (Investment Advisors) Regulations, 2013:

Step 1: Go through the SEBI (Investment Advisors) Regulations, 2013 for checking the eligibility criteria and such other details.

Step 2:  Make an  application to SEBI in Form A as provided in the Regulations along with all the necessary supporting documents.

Step 3: Generally, the applicant will receive a reply from SEBI within one month from the date of receipt of application. However, the time taken for registration depends on how the applicant fulfills all the registration requirements and provides the complete information in all respects.

Step 4: Mention the following in the covering letter:

  1. Whether you are providing investment advisory services prior to these Regulations. If yes, provide details.
  2. Details of the investment advice provided prior to such application.
  3. Or if, you are applying for registration of as a new Investment Advisor providing

investment advisory services.

Step 5: As an integral part of the registration process, submit the

following

  1. Form A appropriately filled, numbered, duly signed and stamped.
  2. Application fees of Rs. 5,000/- by way of bank draft in favour of “The

Securities and Exchange Board of India”, payable at Mumbai.

Step 6. Check the SEBI Website regularly to make an online application in terms of the guidelines as prescribed by SEBI from time to time.

Step 7: Your Application shall be approved if SEBI is satisfied that you shall comply with its regulations and requirements, approve the application and inform the applicant, on receipt of the payment of registration fees, grant certificate of registration subject to such terms and conditions as the Board may deem fit and appropriate.

Step 8: On receipt of approval from SEBI, you are required to pay a registration fee of

Rs.1,00,000/- (If corporate) and Rs.10,000/- (If Individual) by way of bank draft in favour of “The Securities and Exchange Board of India”, payable at Mumbai. On receipt of registration/ re-registration fees, SEBI will grant the certificate of registration as an IA.

Post- Registration compliance

  • Once registered, as an IA you must comply with the reporting requirements as specified by SEBI from time to time.
  • You must regularly check the SEBI website for any updation/ circulars/guidelines issued from SEBI from time to time with respect to the IA.
  • Don’t forget to intimate SEBI of any material change in the details already furnished to SEBI within a reasonable period of time.

Additional Information:

  • If you are seeking seeking registration under IA Regulations you may also file your registration application with the concerned Regional Office/Local Ofiice of the Board for grant of registration
  • Currently SEBI has its Head Office in Mumbai

4 Regional Offices:

  1. Eastern Regional Office – Kolkata
  2. Northern Regional Office – Delhi
  3. Southern Regional Office – Chennai
  4. Western Regional Office II – Ahmedabad

9 Local Offices :  

Bengaluru, Bhubaneshwar, Guwahati, Hyderabad, Indore, Jaipur, Kochi, Lucknow and Patna

  • Documents/Annexure submitted along with the application need to be numbered with signature/stamp on each page.
  • In case of an Authorized signatory, please submit an authorization letter from the Directors/Designated Partners of the IA.

Once you are ready with the registration certificate issued by SEBI, you can start doing your business as an Investment Advisor. Oh…mmmm…Looking for your Infrastructure needs? Worried how to communicate your stock tips to your customers? Have questions about setting up a credible Stock Tips website and marketing your business?  Worried on how to manage your customers? Are you looking for a One Stop IT solution that can help you with all your needs?

There are different solutions to your needs in the market. Try googling out and you will find various options like SMS and E-mail packages. Website need? Start working with a Software team who can build your Website etc., But again you will have to manage your operational costs, your hosting issues, your business need for configuring the website & application, smart mobile app management etc.,

However, i recently came across a blog which mentions about a product that could provide a one stop IT solution to all your Stock Tip/ Stock Advisory needs. It helps in solving your problem to some extent. Try googling aboutKloudPortal Falcon. The good thing about this product is they give you an option to play with their Demo version. You can subscribe only when you are satisfied. Their product works pretty well with Intraday trading advisors who would like to service their customers immediately on entry or exit of stocks. They seem to deliver your product with your own domain name. I have recommended this to a few friends of mine, who would like to become Stock Investment Advisors.

Reference URLs:

SEBI:

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1369826090264.pdf

KloudPortal:

https://www.kloudportal.com

http://demo.kloudportal.com/falcon/dashboard

Posted 5 days ago by

3 Comments

  1. i want you to make my stock tips website

    Reply
  2. Hi

    I want to become stock market tip advisor, want to open my firm. I am not sebi registered so can you help me in regsrds to what certification i need to obtain.

    Also i am a person with pharma background, so am i elligible to become a stock market equity tip advisor?

    Reply
  3. Want to start my advisory company. Send me the details.

    Reply

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