The Capital Market regulator Securities and Exchange Board of India (SEBI) has made it mandatory for Investment advisors to register before offering any advisory services to investors. The investment advisor will get a registration certificate and then can offer services to clients.

The definition of an investment adviser is a person who, for a consideration, is engaged in the business of providing investment advice to others, either directly or through publications or writings or electronic mails, or who, for a consideration and as part of a regular business, issues or publishes reports or analyses containing investment advice. The term includes any person who holds himself out as an investment advisor (by whatever name called) to others

However, Apex Regulator has given relaxation to investment adviser, by giving time period of six months for investment advisors to get registered. Offering advice to some Newspaper, Journal or Online Source has been exempted from the rule.

At present, a large number of investment advisors are not registered with AMFI or SEBI (The security watchdog has not offered any registration facility so far), and they are offering advice for investment in capital market without any contract.

It will be even good for Investment advisors as they will be able to win client trust. Small investors will be benefitted from the decision of SEBI. Indian Stock markets have seen tremendous growth in past couple of years and SEBI wants to keep markets secure and free from any scams.