SEBI Registered Investment Advisor: Why It Matters and How to Verify One in India

The difference between a real RIA and a Telegram "tipster" — and a Python script to check the SEBI registry

Every week an Indian retail trader loses money to an unregistered "advisor" on Telegram. SEBI regulates this strictly. Here is how to protect yourself and verify any advisor on the official registry.

What is an RIA?

A Registered Investment Advisor (RIA) is licensed under SEBI (Investment Advisers) Regulations, 2013. They can charge a fee for advice — but cannot take your money or promise returns.

RIA vs RA (Research Analyst)

	RIA	RA
Gives advice	Yes	Yes (research reports)
Charges fee	Yes (flat/fixed)	Often free + brokerage
Manages money	No	No
SEBI reg	Required	Required

Both must be on the SEBI portal.

Why it matters

Unregistered advisors:

• Promise "assured 5% monthly" (illegal)
• Share your capital (ponzi)
• Vanish after one loss

A registered RIA is accountable, audited, and complaint-able.

How to verify on SEBI

1. Go to https://www.sebi.gov.in/sebiweb/other/rai.jsp
2. Search by name / registration number (INAxxxxxxxx)
3. Confirm "Active" status + valid expiry

# sebi_check.py — fetch RIA list (public ZIP) and grep
import urllib.request, zipfile, io, re

def check_sebi(reg_no):
    url = "https://www.sebi.gov.in/sebi_data/attachmentfiles/RIA_DATA.zip"
    data = urllib.request.urlopen(url, timeout=30).read()
    z = zipfile.ZipFile(io.BytesIO(data))
    text = z.read(z.namelist()[0]).decode('utf-8', 'ignore')
    return reg_no in text

print(check_sebi("INA0000XXXXXX"))
# Mac/Linux/Termux: python3 sebi_check.py
# Windows CMD: python sebi_check.py

Red flags

• No registration number on website
• "Guaranteed returns"
• Asks for trading password
• Only on Telegram/WhatsApp
• Pushy upsell

My own disclosure

I (Shakti Tiwari) am a trader and AI builder, not a SEBI-registered advisor. My articles are research/education, not personalized advice.

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Full verification walkthrough (screen by screen)

Bahut log kehte hain "SEBI site pe check kar liya" — but actually woh sirf Google search karte hain. Yahan exact walkthrough hai, har screen ka description ke saath. Isko 4 minute lagte hain, ek baar. Us 4 minute ne mere kai dost bacha liye.

Screen 1 — SEBI Intermediaries landing page.
Open https://www.sebi.gov.in/intermediaries.html. Screen pe ek blue-white government layout dikhega with a left sidebar listing intermediary categories: Stock Brokers, Depository Participants, Merchant Bankers, Investment Advisers, Research Analysts, Portfolio Managers. The main panel has a dropdown labelled "Select Category" and a "Recognised / Registered" table below. Click Investment Advisers.

Screen 2 — The search form.
Ek simple form aata hai: three text boxes — Name of Entity, Registration Number, City — plus a captcha field and a "Search" button. Sabse reliable input registration number hai, kyunki names duplicate hote hain ("Wealth Creators" jaise naam 40 entities ke paas hain). Registration number format: INA + 9 digits (e.g. INA000012345). Research Analyst ka format INH + 9 digits. Portfolio Manager INP, Broker INZ.

Screen 3 — Result row.
Result ek horizontal table row hai with columns: Registration No. | Name | Contact Person | Address | Email | Telephone | Validity | Category (Individual / Non-Individual / Corporate). Sabse important column Validity hai. Agar wahan "Perpetual" likha hai, registration active hai (SEBI moved most registrations to perpetual validity, subject to fee payment). Agar koi past date likhi hai — expired. Agar entity list mein hai hi nahi, woh unregistered hai, period.

Screen 4 — Cross-check with the debarred list.
Yeh step 95% log skip karte hain. Registration hona kaafi nahi — advisor debarred bhi ho sakta hai. Go to https://www.sebi.gov.in/enforcement/orders.html and search the entity name. Screen pe PDF orders ki chronological list hoti hai with columns Date | Subject | Download. Agar naam wahan milta hai "Order in the matter of ..." heading ke saath, PDF kholo aur last page ka "Directions" para padho.

Screen 5 — Cross-check the person, not just the firm.
Fraudsters firm band karke naya naam le lete hain, but PAN wahi rehta hai. Advisor ke website pe "Compliance" ya "Regulatory Disclosure" page se principal officer ka naam nikaalo, phir usko SEBI enforcement search mein daalo.

Screen 6 — Screenshot everything.
Registration row ka screenshot lo with the URL bar and date visible. Agar kabhi complaint file karni padi, SCORES pe yeh attachment sabse strong evidence hota hai.

Registered categories: the full list you should know

SEBI kai categories register karta hai, aur log inko mix kar dete hain. Yeh clear rakho:

Category	Prefix	Kya kar sakte hain	Kya NAHI kar sakte
Investment Adviser (RIA)	INA	Personalised advice, financial planning, fee lena	Aapka paisa hold karna, returns guarantee
Research Analyst (RA)	INH	Research reports, buy/sell calls publish karna	Personalised portfolio advice
Portfolio Manager (PMS)	INP	Discretionary/non-discretionary portfolio manage (min ₹50 lakh)	Retail small-ticket pooling
Stock Broker / Trading Member	INZ	Execution, order routing	Advice fee lena bina RIA ke
Depository Participant	IN-DP	Demat accounts	Trading advice
Merchant Banker	INM	IPO / issue management	Retail tips
AIF	IN/AIF	Pooled alternative funds (min ₹1 crore)	Retail deposits
Mutual Fund Distributor	ARN (AMFI)	MF products distribute, commission	Fee-based advice

Ek important nuance: ARN holder RIA nahi hai. Bahut "advisors" ARN dikhate hain — woh sirf distribution licence hai, advice licence nahi. Similarly, ek RA aapko "Nifty 24000 CE buy karo" publicly bol sakta hai research ke roop mein, but aapke portfolio ke hisaab se personalised sizing advice nahi de sakta.

RIA fee structure: exactly what they can charge

SEBI ne fees ko cap kiya hai taaki "₹5 lakh lifetime membership" wale scams band ho. Do modes allowed hain, aur advisor ko client se likhit mein mode choose karwana padta hai:

Mode A — Assets under Advice (AUA) based. Maximum 2.5% of AUA per annum per family of client, across all services. AUA ka matlab woh assets jinpe advice di ja rahi hai — advisor ke paas custody nahi hoti.

Mode B — Fixed fee. Maximum ₹1,51,000 per annum per family (SEBI has revised this ceiling over time; earlier ₹1.25 lakh — always check the latest circular before signing).

Additional rules jo aapko protect karte hain:

• Advance fee maximum 2 quarters ke liye li ja sakti hai (individual advisers ke liye).
• Agar aap agreement terminate karte ho, unused advance refund hona chahiye pro-rata basis pe.
• Fee sirf bank transfer / cheque se advisor ke registered account mein — kabhi kisi personal UPI ya "manager ke account" mein nahi.
• Advisor performance fee ya profit sharing nahi le sakta RIA capacity mein. "50-50 profit share" offer = instant red flag.
• Ek hi entity dono advice aur distribution nahi kar sakti same client ko (client-level segregation), taaki commission conflict na ho.

Practical sanity check: agar koi "₹9,999 mein 30 din ka guaranteed jackpot pack" bech raha hai, woh fee structure hi non-compliant hai, chahe uske paas number ho ya nahi.

How to read an advisor's disclosures

Har genuine RIA ke website pe ek boring, ugly page hota hai — usually footer mein "Disclosures" ya "Regulatory". Wahi page sabse zyada sach bolta hai. Yeh checklist chalao:

1. Registration block. Naam, INA number, registration date, validity, registered office address, BASL membership number (BSE Administration & Supervision Ltd — RIAs ke liye mandatory administration body).
2. Principal Officer & Compliance Officer. Naam aur email dono hone chahiye. Agar sirf "support@" hai, weak.
3. Conflict of interest declaration. Kya advisor kisi broker/AMC se commission leta hai? Kya woh khud usi stock mein position rakhta hai jispe advice de raha hai?
4. Grievance redressal mechanism. Email, TAT (usually 30 days), escalation matrix, SCORES link, aur ODR (Online Dispute Resolution) portal link — SEBI ne ODR mandatory kiya hai.
5. Standard warning line. "Registration granted by SEBI ... does not guarantee performance of the intermediary or provide any assurance of returns to investors." Agar yeh line missing hai, doubt karo.
6. Risk profiling & suitability statement. RIA ko aapka risk profile assess karna legally mandatory hai. Jo advisor bina risk profiling ke direct calls deta hai, woh regulation 16/17 violate kar raha hai.
7. Fee page. Explicit numbers, mode, refund policy, GST treatment.
8. Audit statement. RIAs ko annual compliance audit karwana padta hai; kai achhe advisors uska summary publish karte hain.

Agar in 8 mein se 5 bhi missing hain, ya "disclosures" page ek generic copy-paste blob hai jisme entity ka naam bhi galat hai — walk away.

Case studies: how the frauds actually run

Naam nahi lunga, but patterns real hain aur SEBI enforcement orders mein baar-baar dikhte hain. Pattern pehchano, entity nahi.

Case 1 — The performance-fee trap. Ek "advisory" firm ne clients ko bola: fee kuch nahi, bas profit ka 30% dena. Trades WhatsApp pe aate the. Winning trades ke screenshots share hote the, losing trades chup-chaap delete. Profit share invoice sirf winning months pe aata tha — cumulative loss ke bawajood client net paisa de raha tha. Regulatory reality: RIA profit sharing le hi nahi sakta. Lesson: fee model hi legality ka pehla test hai.

Case 2 — The "registered" screenshot. Telegram channel ne apne bio mein ek INH number lagaya. Number valid tha — but kisi doosri firm ka. Verification mein 20 second lagta: number search karo, jo naam aaye woh channel ke naam se match karo. 4,000 members ne kabhi match nahi kiya. Lesson: number valid hona kaafi nahi, number ka OWNER match karna chahiye.

Case 3 — Handover of credentials. "Hum aapke account mein khud trade kar denge, sirf login de do." Yeh unauthorised trading hai aur PMS-like activity bina INP ke. Losses ke baad broker bola credentials aapne share kiye, insurance nahi. Lesson: login/TPIN/OTP kabhi share nahi — RIA ko iski zarurat hi nahi hoti.

Case 4 — The expiry-day jackpot pack. ₹15,000 ka "expiry special". Har Thursday 3-4 calls, aur "80% accuracy" claim. Accuracy ka calculation? Sirf woh trades count hote the jinpe unhone exit message bheja. Jo trades zero ho gaye, unke exit messages hi nahi aate the — survivorship bias as a business model. Lesson: verifiable, timestamped, complete track record maango — cherry-picked screenshots nahi.

Case 5 — Fake refund/recovery agent. Fraud ke baad ek "recovery consultant" ne call kiya: ₹10,000 processing fee do, SEBI se paisa wapas dila denge. SEBI/SCORES kabhi fee nahi maangta. Yeh second-layer scam pehle victims ko hi target karta hai, kyunki unki list bik chuki hoti hai. Lesson: complaint file karna free hai, hamesha.

How to file a complaint on SCORES (step by step)

SCORES = SEBI Complaints Redress System. Yeh free hai aur legally tracked hai. Latest version SCORES 2.0 hai with auto-routing and two-level review.

1. Register. https://scores.sebi.gov.in pe jao → "Register here" → naam, PAN, email, mobile daalo. OTP verification hoga. PAN zaroori hai — anonymous complaints entertain nahi hote.
2. Login & choose "Lodge a Complaint". Screen pe ek category dropdown aata hai: Listed Company / Registered Intermediary / Others. Intermediary chuno, phir sub-category "Investment Adviser" ya "Research Analyst".
3. Select the entity. Search by name — dropdown se entity pick karo. Agar entity list mein nahi milti, woh unregistered hai; us case mein complaint SEBI ko unregistered-entity ke roop mein file hoti hai (aur parallel police/cyber cell FIR strongly recommended hai).
4. Complaint details. 1,000 character ka description box. Facts likho, gussa nahi: dates, amount, mode of payment, kya promise hua tha, kya hua. Bullet style best.
5. Attach evidence (PDF, up to ~2 MB). Payment proof, chat screenshots with visible timestamps and handle, website disclosure screenshot, advisor ka registration screenshot, aur agreement copy — sab ek hi PDF mein merge karke upload karo.
6. Submit & note the registration number. Aapko ek complaint registration number milega. Isko save karo.
7. Track & escalate. Entity ko 21 din milte hain ATR (Action Taken Report) dene ke liye. Aapko ATR pe 15 din mein review maangne ka option milta hai. Satisfied nahi ho to first review designated body (BASL for RIAs) ke paas jaata hai, phir second review SEBI ke paas.
8. ODR portal. Agar SCORES ke baad bhi resolution nahi, smartodr.in pe conciliation/arbitration file karo. Yeh binding process hai aur monetary recovery ka realistic route hai.
9. Parallel actions. Financial fraud ho to cybercrime.gov.in pe report karo aur 1930 helpline pe call karo — jitni jaldi karoge, funds freeze hone ka chance utna zyada.

Ek practical note: SCORES advisor ko punish nahi karta directly — woh redressal ka channel hai jo pattern build karta hai. Jab ek hi entity pe 50 complaints aati hain, enforcement action shuru hota hai. Isliye chhoti amount ke liye bhi file karo. Aapki complaint agle bande ko bacha sakti hai.

A 60-second pre-payment checklist

Paisa bhejne se pehle yeh chalao:

• [ ] INA/INH number website pe visible hai
• [ ] SEBI registry mein number + naam dono match karte hain
• [ ] Validity "Perpetual" ya future date
• [ ] Enforcement/debarred list mein naam nahi
• [ ] Fee registered bank account mein, invoice + GST ke saath
• [ ] Koi profit sharing / guaranteed return language nahi
• [ ] Risk profiling form bhara gaya
• [ ] Signed agreement mila with termination + refund clause
• [ ] Grievance email + SCORES + ODR link disclosed
• [ ] Kabhi login/OTP nahi maanga gaya

Sab tick? Aage badho. Ek bhi cross? Ruk jao.

FAQ

Q1: RIA se paisa safe hai?
They don't take your money — only advise. Your funds stay with broker.

Q2: Fee kitni letay hain?
SEBI cap: ₹1.25–1.51 lakh/yr (per latest circular) or 2.5% AUA (whichever lower) for individuals.

Q3: Telegram tipster safe?
Only if they show valid RIA/RA number. Most don't.

Q4: Complaint kahan karein?
SEBI SCORES portal, then BASL review, then SEBI review, then SMART ODR.

Q5: Research free allowed?
RA can publish free research but must be registered.

Q6: Kya foreign advisor India mein advice de sakta hai?
Indian residents ko personalised advice ke liye SEBI registration chahiye. Foreign newsletters generic research ke roop mein aate hain — personalised advice nahi.

Q7: Agar advisor ka registration expire ho gaya ho to?
Us period ki advice non-compliant hai. Fee refund maango aur SCORES pe file karo.

Q8: Kya RIA meri trades execute kar sakta hai?
Nahi. Execution broker ka kaam hai. RIA sirf advice deta hai; credentials maangna hi violation hai.

Conclusion

Verify before you trust. SEBI RIA/RA registry is public — 30 seconds saves your capital. If someone advises without a number, walk away. Aur agar kuch galat ho jaye, chup mat raho: SCORES aur ODR free hain, aur har filed complaint enforcement pattern banati hai.

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Shakti Tiwari is a Nifty option trader and AI builder at optiontradingwithai.in. Find more at dev.to/@shaktitiwari.

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Shakti Tiwari — Nifty Option Trader, XGBoost Expert. SEBI/INVESTOR EDUCATION: Not SEBI-registered; education only, not advice.

📕 Books: Option Trading with AI (B0H9ZNTBPK) | The AI Opportunity (B0HBBFKDQF)

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