tips providing company has to obtain SEBI registration?

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chetan j shah (Querist)
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17 January 2011 Whether the company dealing in providing services of Tips of shares and nifty has to obtain SEBI registration? If yes, what is procideure and capital adequecy norms for that and what is its fees.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 January 2011 I do not think that such companies are required to get registered with SEBI as these are not directly involved in Securities Transactions.

Aashok Kumar Sharma

Aashok Kumar Sharma

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02 August 2025 Yes, a company providing tips on shares and Nifty (i.e., stock market tips, investment advisory services) **must obtain SEBI registration** as an **Investment Adviser** under the SEBI (Investment Advisers) Regulations, 2013.

### Key points:

1. **Is SEBI registration required?**

* Yes. Providing stock market tips or advice is treated as Investment Advisory service under SEBI regulations.
* Without registration, it is illegal to provide such services.

2. **Procedure for SEBI Registration:**

* Apply online through SEBI's Investment Adviser Registration portal.
* Submit necessary documents including proof of address, identity, educational qualifications, experience certificates, details of business, etc.
* Pay the prescribed registration fee.
* SEBI conducts scrutiny and grants registration if all conditions are met.

3. **Capital Adequacy Norms:**

* The net worth of the investment adviser should be at least **₹5 lakh** (INR 500,000) as per SEBI guidelines.
* This net worth must be maintained continuously.

4. **Fees:**

* Registration fees and renewal fees vary but are generally a few thousand rupees (approx ₹20,000 to ₹30,000).
* Exact fees depend on SEBI’s latest schedule.

5. **Other Compliance:**

* Must comply with SEBI (Investment Advisers) Regulations, including code of conduct, disclosures to clients, maintaining records, etc.
* Annual renewal of registration is mandatory.

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If you want, I can help you with a checklist or draft application for SEBI registration for an investment advisory firm! Would you like that?

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