SEBI to Introduce Special Platform for Investment Advisors to Simplify Registration and Compliance

The Securities and Exchange Board of India is preparing to introduce a digital platform aimed at supporting investment advisors through the regulatory process, as per The Moneycontrol report.  

The initiative is designed to simplify onboarding and compliance while encouraging greater participation in the advisory ecosystem. 

SETU Platform and Its Objectives 

The upcoming platform, named SEBI SETU, is expected to go live within the current month. It is being developed as a comprehensive system to assist investment advisors from the initial registration stage through ongoing compliance requirements. 

The platform will provide structured regulatory guidance and is intended to function as a support mechanism similar to tools previously introduced for foreign portfolio investors.  

The broader aim is to address the gap between the large investor base in the country and the relatively small number of registered advisors. 

Despite having more than 22 crore demat account holders, the number of registered investment advisors remains below 1,000, with even fewer actively operating.  

A key reason for this gap has been the complexity associated with compliance, which has discouraged many professionals from registering. The new platform is expected to address this by offering clarity and step-by-step guidance. 

Regulatory Changes Supporting the Initiative 

The launch of the platform follows a series of regulatory adjustments introduced last year to make the ecosystem more accessible.  

Advisors may also offer second opinions on financial products and charge fees based on assets under advice, capped at 2.5% annually. However, they must disclose the possibility of dual charges and obtain client consent each year. 

Additional relaxations include allowing individual advisors crossing regulatory thresholds to continue onboarding clients during the transition to a corporate structure. Eligibility norms have also been simplified, enabling any graduate with the required certification from the National Institute of Securities Markets to register. 

Further easing of requirements means applicants no longer need to submit documents such as CIBIL reports, net worth statements or infrastructure details, although declarations will still be required. 

Read More: SEBI Partners With Google to Launch Verified Badges for Trading Apps! 

Conclusion 

With the introduction of the SETU platform alongside regulatory simplifications, SEBI is working towards building a more accessible and structured environment for investment advisors, aiming to expand participation and strengthen the advisory landscape. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.