In India, anyone can call themselves a financial planner, wealth manager, or investment expert. Very few of them are actually registered with SEBI to provide investment advice legally.

A SEBI Registered Investment Adviser (RIA) is a person or firm registered with SEBI under the Investment Advisers Regulations, 2013 to provide investment advice for a fee. The registration comes with strict legal obligations: fiduciary duty, fee transparency, and no commissions from products.

This post explains what an RIA is, what they do, how they are different from mutual fund distributors, what changed in the 2024 and 2025 regulatory updates, and how to verify credentials before working with one.

 

Key Takeaways • A SEBI Registered Investment Adviser (RIA) is legally required to act in their client’s best interest at all times. This fiduciary duty is the core distinction from a mutual fund distributor. • RIAs operate on a fee-only model. They cannot receive commissions from product manufacturers for their advisory services. • SEBI’s December 2024 amendment made qualification easier: a graduate degree in any discipline plus NISM Series XA and XB certifications now qualifies (experience requirement removed). • The minimum net worth requirement was replaced with a deposit-based system lien-marked to the IAASB (BSE Limited) as of the 2024 amendments. • Investors can verify an RIA’s registration on the SEBI SCORES portal or SEBI intermediaries search before engaging.

 

 

 

What Is a SEBI Registered Investment Adviser?

Under the SEBI (Investment Advisers) Regulations, 2013, an Investment Adviser is any person who provides investment advice to clients for a fee. Investment advice includes advice on investing in, buying, selling, or dealing in securities, and financial planning services.

The key word is fee. An RIA is paid by the client, not by the product manufacturer. This is what creates the fiduciary obligation: the RIA has no financial incentive to push any particular product, and is legally required to provide advice that serves the client’s best interest.

SEBI administers RIA registration through the Investment Adviser Administration and Supervisory Body (IAASB), which has been BSE Limited since July 25, 2024.

 

RIA vs. Mutual Fund Distributor: The Critical Difference

Factor	SEBI Registered Investment Adviser (RIA)	Mutual Fund Distributor (MFD)
How paid	Fee from client only. AUA mode up to 2.5% of AUA per year, or fixed fee up to Rs. 1,51,000 per family per year.	Commissions from AMC on investments. Upfront and trailing commissions on regular plans.
Fiduciary duty	Yes. Must act in client’s best interest.	No fiduciary duty. Must comply with AMFI norms.
Can they execute trades?	Guidance only. Cannot execute without explicit client consent for each transaction.	Executes transactions as part of distribution.
Can they sell regular MF plans?	No. Must segregate advisory and distribution functions strictly.	Yes. Earns trailing commissions on regular plans.
Regulated under	SEBI IA Regulations 2013.	SEBI MF Regulations via AMFI code.

 

Fortune Wealth is an AMFI-registered mutual fund distributor and a SEBI-registered investment firm, not an RIA. We help clients access investment products and do not charge advisory fees. Understanding this distinction is important for investors choosing between an RIA and a distributor.

 

What Does an RIA Do?

• Risk profiling: Formal assessment of risk tolerance, financial goals, and investment horizon before any advice.
• Financial planning: Comprehensive plan covering goal-based allocation, tax efficiency, insurance, and retirement.
• Portfolio review: Ongoing monitoring and rebalancing recommendations as market conditions or life situation changes.
• Conflict of interest disclosure: Proactive disclosure of any conflicts before providing advice.
• Record maintenance: All advice, agreements, and communications maintained for minimum 5 years.
• AI tool disclosure: As of April 2025, RIAs using AI in advice must disclose this to clients including the extent of usage.

 

Key Regulatory Changes in 2024 and 2025

Qualification (December 2024 amendment)

The minimum qualification is now a graduate degree in any discipline. The earlier requirement of a postgraduate or professional degree in a finance-related field has been removed. The experience requirement for new applicants has also been removed. NISM Series XA and XB certifications remain mandatory. The CFP certification from FPSBI is no longer accepted as a substitute.

Deposit requirement (replaces net worth)

The earlier minimum net worth requirement (Rs. 5 lakh for individual RIAs) was replaced with a deposit-based system lien-marked to the IAASB (BSE Limited). The deposit is scaled by number of clients. As of an August 2025 circular, deposits can be held in bank FDs or liquid and overnight mutual fund units under lien.

Fee caps

• AUA mode: Up to 2.5 percent of Assets Under Advice per annum per family.
• Fixed fee mode: Up to Rs. 1,51,000 per annum per family (reviewed every 3 years per Cost Inflation Index).

MITC (Most Important Terms and Conditions)

A standardised MITC document became mandatory from February 17, 2025. It must be included in every advisory agreement, clearly stating the scope of service, fees, the RIA’s inability to execute trades without per-trade client consent, conflict of interest policy, and grievance redressal information.

 

How to Verify a SEBI RIA

1. Go to sebi.gov.in and search the intermediaries section under Investment Adviser.
2. Enter the person’s name or SEBI registration number (INA for individual, INH for non-individual).
3. Confirm the registration is active.
4. Check SEBI SCORES for any complaints filed against the adviser.
5. Ask directly: Are you an RIA registered under the Investment Advisers Regulations, or an AMFI-registered distributor (ARN holder)? These are different registrations with different legal obligations.

 

Providing personalised investment advice without being a registered RIA is illegal under SEBI regulations.

 

 

Frequently Asked Questions

What is a SEBI Registered Investment Adviser?

A SEBI Registered Investment Adviser (RIA) is an individual or firm registered under SEBI’s Investment Advisers Regulations, 2013 to provide investment advice to clients for a fee. RIAs have a fiduciary duty to act in the client’s best interest. They operate on a fee-only model and cannot receive commissions from product manufacturers. All RIAs must hold NISM Series XA and XB certifications.

What is the difference between a SEBI RIA and a mutual fund distributor?

A SEBI RIA earns fees from clients and has a fiduciary obligation to provide unbiased advice. A mutual fund distributor (AMFI ARN holder) earns commissions from AMCs and is not required to act as a fiduciary. An RIA cannot execute trades without client consent for each transaction. A distributor executes as part of their distribution role.

How do I verify if someone is a SEBI-registered RIA?

Go to sebi.gov.in and search the intermediaries section under Investment Adviser. Enter the name or registration number. Confirm it is active. Also check SEBI SCORES for complaints. Ask the person directly for their SEBI registration number before engaging. If they cannot provide one, they are not a registered investment adviser.

How much does a SEBI RIA charge?

RIAs can charge under two SEBI-approved modes: AUA mode (up to 2.5 percent of Assets Under Advice per annum per family) or fixed fee mode (up to Rs. 1,51,000 per annum per family as of 2025). Fees must be disclosed in writing before any engagement. The fee limit under the fixed mode is reviewed every 3 years by the IAASB based on the Cost Inflation Index.

Do I need an RIA or a mutual fund distributor?

If you want someone to help you select and execute mutual fund investments without advisory fees, an AMFI-registered distributor is appropriate. If you want holistic, fee-based financial planning across your complete financial picture including insurance, tax, goals, and investment strategy, a SEBI RIA is the right person. The two roles have different legal obligations and different fee structures.

Can a mutual fund distributor also be a SEBI RIA?

Yes, but with strict segregation rules. A company or LLP can hold both registrations but must maintain completely separate advisory and distribution functions, separate agreements, separate fee structures, and separate records. SEBI’s December 2024 amendment formally allowed individuals and partnership firms to hold both registrations simultaneously, subject to conditions to be specified by SEBI.

What is the NISM certification requirement for a SEBI RIA?

All SEBI RIAs must hold NISM Series XA (Investment Adviser Level 1) and NISM Series XB (Investment Adviser Level 2) certifications. The CFP certification from FPSBI is no longer accepted as a substitute for NISM as of the December 2024 amendment. Existing RIAs and new applicants must both hold valid NISM XA and XB certifications.

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