Is your financial advisor legit? Here's how to check Sebi registration

Not all advisors are Sebi-approved. Here's how to spot the real ones and avoid scams

Before handing over your hard-earned money to anyone who calls themselves a “financial advisor”, it’s important to confirm they are actually authorised to give advice. The Securities and Exchange Board of India (Sebi) mandates that only registered investment advisers (RIAs) or entities under certain regulations can legally provide investment advice for a fee. Yet, many investors still fall prey to unregistered agents promising high returns or “inside tips”.

Why Sebi registration matters?

 

A Sebi-registered investment adviser (RIA) is bound by strict regulations designed to protect investors. These advisers must meet minimum qualification, certification, and capital adequacy requirements, and follow a code of conduct that ensures transparency and client-first principles. They are also required to disclose conflicts of interest, maintain records, and charge fees within prescribed limits.

 

Unregistered advisers, on the other hand, often operate in grey zones. They might lure investors through social media, WhatsApp groups, or Telegram channels, offering “exclusive stock tips” or “guaranteed profits”. Sebi regularly issues warnings and bans against such unauthorised platforms.  ALSO READ | Choosing a financial advisor: Look for experience of multiple market cycles

How to verify your adviser’s credentials?

 

Checking your adviser’s Sebi registration is a simple online process.

 

1. Visit Sebi’s official website (www.sebi.gov.in) and navigate to the “Intermediaries / Market Infrastructure Institutions” section.

2.  

Click on “Registered Intermediaries”.

 

In the category list, select “Investment Adviser”.

 

You can then search using the adviser’s name, firm name, or registration number.

 

If the adviser is registered, you’ll find details such as registration status, validity period, address, and whether any disciplinary actions have been taken.

Red flags to watch out for

 

Even if someone claims to be “Sebi-approved”, stay cautious if they:

 

• Refuse to share their registration number or certificate 
• Offer fixed or guaranteed returns

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• Insist on upfront payments or large fees without documentation

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• Communicate only via informal channels like WhatsApp or Telegram

 

Financial advice should come from professionals accountable to regulatory standards. Before you invest or act on any recommendation, take time to check if your adviser is Sebi-registered. It could save you from potential fraud and ensure your money is handled by someone who is both qualified and answerable to the law.