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An Investment Adviser, registered with SEBI has to
follow few guidelines, rules as per the international standards, and Code of
Conduct as laid down by SEBI. Besides, there are conditions on documentation to
maintain, disclosures given to client, having research capacity for advise etc.
All documents have to be audited yearly which SEBI may also inspect anytime.
There are several benefits to work
with a SEBI registered investment adviser:
1. Protection against Frauds - All
SEBI registered investment advisers are regularly audited and monitored by SEBI
itself to ensure financial discipline and transparency. They are bound by and
strictly follow SEBI guidelines and regulations. In essence, the license issued
by SEBI is guarantee against financial fraud and scams.
2.Genuine Claims and Offers – Being
registered with SEBI, they provide only genuine and accurate financial advises
and promises. No more fake claims of higher returns in shorter periods. The
essence of market performance is truly reflected in the workings of financial
advisers, who know that good returns are the function of patience and fiscal
discipline.
3. Comprehensive Assessment – Following
SEBI guidelines, registered investment advisers are required to first
comprehensively evaluate their clients’ preference for investment options and
risk appetite. The purpose of evaluation is to devise and offer investment
plans that are most appropriate to the investor concerned and meet his/her
financial goals.
4. Peace of Mind – You may
think that you have all the knowledge about market and investment options. But,
the fact is, it requires great expertise and knowledge, which makes it a
tedious task. Conversely, it can be better managed by professional financial
managers, giving you the much needed peace of mind with your investments.