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Managing money isn’t entirely about saving. It’s a matter of establishing where to put your money, how to get richer and how to plan for the future. For a lot of Indians, these are overwhelming questions. This is when a financial adviser becomes useful. More people in India want to take control of their money. They are turning to registered financial advisors for help.
If you enjoy finance and like helping others with important decisions, this career may be right for you. You might be asking yourself how to become a financial advisor. This guide will walk you through it.
Before you learn how to become a financial advisor in India, you must know what they do. A financial advisor is an individual providing advice about finance to either businesses or individuals. This might include advice on mutual funds, insurance, budgeting, tax planning, debt management and retirement planning. They are distinguished from regular agents or distributors by their registration with SEBI, or the Securities and Exchange Board of India.
When people ask about how to become a financial advisor, they should know the importance of SEBI registration, without which they cannot establish a business as a financial advisor. It is a legal requirement. Only registered advisers may provide advice for compensation. This registration gives clients assurance that the advisor is sound, works in the client’s best interests and has the right qualifications to give their advice.
Investing isn’t about going after the highest returns. It’s about making the right decisions that align with your financial objectives, risk tolerance and life plans. A licensed financial advisor ensures you can gain clarity.
If you are wondering how do I become a financial advisor in India, knowledge about eligibility is a nice place to start. SEBI has set strict criteria, and all those willing to become advisors should carefully understand them before applying.
Here are the key eligibility criteria for financial advisors:
You will need to have completed a bachelor’s degree in finance, economics, commerce, business management, accounting or similar from a reputable institution. SEBI can also require additional qualifications or certifications in some situations.
Applicants should have a minimum of five years of equivalent experience. This should be in a position in financial services, or in other relevant sectors like investment advisory, fund management or financial planning.
NISM-Series-X-A: Investment Adviser Level 1 exam should be cleared. This is the certificate that will acknowledge that you know the ABCs of finance. It is necessary to adhere to the financial advisor certification requirements if you want to practice as a financial advisor legally and ethically in India.
SEBI has fixed a minimum net worth of ₹1 lakh for individuals applying as financial advisors. If you plan to register as a firm or company, the required net worth will be higher, depending on the business structure.
You must not have had serious criminal convictions or regulatory breaches. SEBI can even do a background check before someone registers.
As a registered financial adviser, you have to put your clients’ interests ahead of your own. The regulator mandates that all advisors adhere to fiduciary norms and avoid any conflict of interest.
On registration, you have to sign the code of conduct of SEBI, provide periodical compliance certificates and renew certifications as and when prescribed. This ensures that everything is crystal clear and the client is safe.
Now that you understand who qualifies, let’s look at the exact steps to become a registered financial advisor in India. This procedure was initiated by SEBI to make sure that only competent and reliable individuals serve the public.
Below is a step-by-step guide to help you through the registration process:
Before you apply, ensure that you have the appropriate qualification and at least 5 years of relevant experience in the financial services industry. This is an important eligibility filter.
This is the certification for securities markets, financial planning, and regulatory practices. It proves your understanding of the fundamentals and your ability to counsel consumers.
Collect all the necessary paperwork for financial advisor licensing in India. This generally includes the educational degree certificate, work experience certificates, identity proof, address proof, NISM certificate, IT returns and the detailed advisory business model.
Ensure that your personal or company net worth meets the minimum requirement. For individual applicants, this means having at least ₹1 lakh in net assets. For firms and entities, SEBI has separate limits depending on the size and structure.
Log on to the SEBI Intermediary Portal and fill out Form A (for individuals) or Form B (for firms or companies). Submit the required documents and pay the applicable fee for the financial advisor registration process.
SEBI may also contact the applicants for any queries or further information after the submission. You need to respond accurately and without delay.
If all is well, SEBI will provide you with a certificate and a different registration number. You are now a registered financial advisor.
Once registered, you are required to adhere to the code of conduct issued by SEBI, maintain proper client records and refrain from giving product-based advice for commission. You’ll also be required to renew your certification every three years and keep up with government-imposed changes.
SEBI wants every registered advisor to keep learning to be acquainted with new laws, what’s happening in the industry and new financial products that are coming into the market. This makes sure that customers are offered timely and knowledgeable suggestions.
With more people looking for unbiased and professional advice, the demand for SEBI-registered advisors is on the rise in urban and semi-urban locations. Registered advisors have the potential to work independently or join advisory firms or develop digital services, so they can keep up with clients on a large scale and experience a stable and consistent yield. This is a career that pays well and has the added benefit of allowing you to help others find their own financial gain.
If you’ve been wondering how to become a certified financial advisor, hope this guide cleared things up. As India’s appetite for financial guidance grows, so does the opportunity for those willing to build a career based on trust, knowledge, and service.
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You must have a graduate degree in finance, commerce, economics, business management, accounting or a related field. You also need to pass the NISM Investment Adviser Level 1 exam and have at least five years of relevant experience.
Yes, anyone can hire a financial advisor for help with managing money. Whether you are a student, working professional or retired, a registered advisor can guide your financial decisions.
Yes, SEBI registration is required if you offer fee-based investment advice. Without it, you can only work as a distributor, not as a financial advisor.
It usually takes one to two months for SEBI to process the application. The timeline may extend if additional documents or clarifications are needed.
Yes, but only if they hold AMFI and IRDA certifications for mutual funds and insurance. SEBI-registered advisors must not earn commissions on these products if they provide fee-based advice.
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