Guide to be a financial advisor in India

A career as a financial advisor is a very good option. This is true especially for those who want to help others invest properly. Indeed financial advisors can assist individuals smartly invest in the financial market and get rich. Moreover, many people are turning to financial advisors for professional assistance. The number of people investing in the share market is also increasing each day. The trend is very strong in the younger generations. Financially aware individuals realise the importance of investing. So, it is the best time to choose a career as a financial advisor.  Read through this article to know everything about being a trading advisor. Let’s start with looking at the role of a financial advisor.

Work of a financial advisor

A financial advisor is an expert who helps investors make appropriate decisions while investing. We can say, they are mentors who help individuals invest in the right investment avenues. They help investors find good assets to invest in and point out profitable trades. A good financial advisor will do most of the hard work for his clients. He will carry out extensive research on all the securities, analyse market trends, read financial statements etc. Financial advisors often go through loads of information, before providing suggestions to their customers. Based on the conclusions he will advise them according to their needs. In short, financial advisors assist people in managing their finances and invest wisely.

Qualifications to become a Financial Advisor

Now you understand what it means to be a financial advisor. We shall now take a glance at the requirements to become a financial advisor in India. Every country has a set of rules and regulations governing the financial advisory market. Similarly, in India, the Securities and Exchange Board of India (SEBI) lays down certain guidelines for becoming financial advisors. The market regulator is responsible for smooth functioning of our country’s financial market. According to its rules, here are the mandatory qualifications for providing financial advice.

Educational qualifications:

1. A post-graduate diploma in commerce, accounts, economics, finance, or banking.

2. Graduate degree of any stream with a minimum experience of five years in advisory services in investment instruments, portfolio management etc.

Certifications

 An individual has to obtain the following certificates.

1. Certification of NISM, Series X-A: Level 1

2. Certification of NISM, Series X-A: Level 2

3. Certificate of Financial Planner issued by the Financial Planning Standards Board India (FPSB).

Financial Obligations

You need to fulfil the following financial requirements for becoming a financial advisor. 

1. total  assets  of An applicant should be at least Rs 2 lakhs.

2. The minimum requirement is Rs 25 lakhs for financial firms. An institution must hold cumulative assets of minimum Rs 25 lakhs.

How to obtain SEBI licence

To start offering financial advice you must get a valid license from SEBI. Without a license you will not become a registered investment advisor (RIA). It is compulsory for every organisation or individual to possess this license. Before we proceed to the application process, note down the documents you shall need.

Required Documents:

• Identity proof like aadhaar, voter id,driving licence or passport
• Address proof such as aadhaar, passport, voter id, etc.
• Proof showing essential qualification
• Net worth declaration certificate from a registered chartered accountant and Income Tax Return (ITR)
• Any other documents or declaration forms as asked by SEBI.

Procedure to apply for your license

Follow the steps as  mentioned below and become a  registered financial advisor.

1. First, go to SEBI’s official website of. Search for the SEBI Intermediary Portal and move on to the self-registration page.

2.  Now,fill out the application form properly. Provide all the information.  Do not skip the fields marked with asterisk. It is compulsory to provide those details.

3. Then, you  will have to deposit the required fee. Select the preferred mode of payment as per your convenienc.You can pay using internet banking service, debit card or credit card. After that click on submit. 

4. After making  the requisite payment, individuals will receive a  confirmation from SEBI. In  addition, applicants will also get the login ID and password within a week.

5. Use the login credential and login to your account. Complete the final step of application before two weeks. Upload the required documents as well. Fill the  following details in the Form A.

• Personal information
• business strategy
• a declaration as per schedule ii of the SEBI intermediaries regulation

6. You shall receive the SEBI approval alongside your license via post.

So, in this way you can become a financial advisor. Even demat apps nowadays provide a lot of trading suggestions. However, the need for financial advisors remains significant. Now, firms like IIFL Securities also have dedicated programs for financial advisors. Their Advisor,Anywhere, Anytime program provides an excellent platform for passionate individuals to achieve their dreams.