SEBI introduces new guidelines to make Registered Investment Advisor framework more accessible

Regulatory body SEBI has introduced new guidelines to make the Registered Investment Advisor (RIA) framework more accessible and practical. It noted that a graduate degree in any discipline, along with relevant NISM certification, is sufficient to qualify as an investment advisor. RIAs can now cater to up to 300 clients before transitioning to corporate status, up from the earlier cap of 150 clients. Additionally, net worth requirements for non-individual RIAs now vary by client base. Now up to 150 clients it is Rs 1 lakh, for 150'300 clients it is Rs 2 lakh, for 300'1,000 clients it is Rs 5 lakh and over 1,000 clients it is Rs 10 lakh. SEBI guidelines also address part-time RIAs, limiting them to 75 clients and requiring the term 'part-time investment adviser' in all client communications. Advisors must disclose the use of AI tools in their services and inform clients when products or services fall outside SEBI's regulatory purview, it noted.

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