SEBI Tightens Qualification Criteria for Investment Advisers: Check here for Complete Details [Read Notification]
The amendment also removes outdated references and terminologies to reflect the current practices in the securities market.
(Amendment The Securities and Exchange Board of India (SEBI) has notified the Investment Advisers) Regulations, 2025, introducing a range of regulatory updates to the criteria for qualifying as an investment adviser recognized by the securities board.
The amendments, which were published in the official gazette on 25 November 2025, overhauls key provisions of the Investment Advisers Regulations, 2013, particularly with regard to educational eligibility, certification requirements, process of transition from individual to non-individual investment adviser and governance norms.
Also Read: SEBI amends Listing and Disclosure Requirements, New Schedule Inserted for Material Related Party Transactions [Read Notification]
Under the revised framework, individual investment advisers, as well as principal officers, partners, and associated persons of non-individual advisers, must hold at least a graduate degree or equivalent qualification from a government-recognised institution, or a CFA Charter, in addition to a valid certification from the National Institute of Securities Markets (NISM) or another NISM-accredited body.
The update also recognises postgraduate programs in Securities Market or Financial Planning offered by NISM as qualifying credentials.
SEBI has now made periodic re-certification mandatory. Every eligible person must renew their NISM or equivalent certification before its expiry or within three years from the date of registration, whichever may be earlier. This re-certification mandate has been introduced to ensure that advisers remain updated on evolving regulatory and market developments.
Understand the complete process and tax nuances of GST refunds, Click here
The revised regulations also makes it compulsory for every non-individual investment adviser to designate a Compliance Officer who shall be responsible for ensuring adherence to SEBI’s Act, rules, regulations and circulars.
SEBI has also brought about certain modifications to Form A which are required to be submitted by investment advisers for registration and renewal applications.
Also Read: SEBI Updates Rules for Review, Appeal, and Waiver of Penalties by MIIs [Read Circular]
Form A now requires details of the compliance officer, contact person and declarations confirming the adequacy of infrastructure to perform advisory functions effectively. The earlier requirement for “address proof” has been replaced with a simpler “details of address” disclosure.
To further enhance regulatory supervision, applications for registration will now be routed through recognised supervisory bodies instead of SEBI’s Mumbai office. These bodies will handle scrutiny and monitoring, moving towards a decentralised approach for faster processing and stronger oversight.
The threshold transition rule has also been revised: if an individual investment adviser exceeds either 300 clients or ₹3 crore in annual advisory fees, they must notify the supervisory body and apply for in-principle approval to shift from individual to a non-individual investment adviser within three months.
Furthermore, the amendment also removes outdated references to “sub-brokers” and updates terminology across the regulations to reflect the current market structure.
Also Read: SEBI Further Extends Timeline for Qualified Stock Brokers to Implement Systems for Optional T+0 Settlement Cycle [Read Circular]
Together, the reforms underscore SEBI’s commitment to reinforcing professionalism, enhancing accountability and ensuring that investors receive advice from advisers that fulfill all the requisite qualifications, certifications and are bound by governing laws.
These regulations take effect immediately upon publication in the Official Gazette.
Telegram for Support our journalism by subscribing to Taxscan premium. Follow us on quick updates
