SEBI Grade A Current Affairs — 21 September 2026

SEBI registers Investment Advisers under the SEBI (Investment Advisers) Regulations, 2013. Registered advisers receive a unique registration number prefixed 'INA'. They must meet eligibility criteria covering qualifications, net worth, and certifications. SEBI maintains a public register where any investor can verify an adviser's credentials. The framework distinguishes investment advice from distribution, requiring fee-only compensation for advisers. Registration is mandatory before any individual or entity offers investment advisory services to clients in India.

The SEBI (Investment Advisers) Regulations, 2013 created a formal licensing architecture for anyone who offers personalised investment advice for consideration. Before this framework, the space was largely unregulated, enabling unqualified intermediaries to exploit retail investors.

Key structural features:

1. Registration Number Format: Every registered Investment Adviser (IA) receives a unique number beginning with 'INA' (for individuals) or 'INA' followed by specific digits identifying the entity type — this is a distractor-friendly fact in MCQs.

2. Eligibility: Applicants must hold a professional qualification (post-graduate in finance/economics/business or CFA/CA/CS/CWA) plus a NISM Series-X-A certification. Net worth requirements differ — individuals need ₹5 lakh; non-individuals (firms) need ₹50 lakh.

3. Segregation of Activities: An IA cannot simultaneously act as a distributor. This 'advisory vs distribution' wall prevents conflict of interest — a concept SEBI has tightened progressively since 2020.

4. Fee Structure: IAs can charge only from clients, not from product manufacturers. This removes the commission-driven incentive to mis-sell.

5. Public Register: SEBI's website hosts a searchable register so investors can verify credentials — investor protection is the stated rationale.

For the exam, the distinction between Investment Advisers and Research Analysts (covered under separate 2014 regulations) is a common distractor angle.

Collective Investment Management Companies (CIMCs) are entities that raise funds by pooling investor money into schemes investing in physical assets like plantations and real estate — distinct from mutual funds. SEBI registers and regulates CIMCs under the SEBI (Collective Investment Schemes) Regulations, 1999. The registry lists all currently registered CIMCs. These entities must obtain a certificate of registration from SEBI before launching any collective investment scheme and must comply with continuous disclosure and investor protection norms.

A Collective Investment Scheme (CIS) is any arrangement that pools money from investors to generate returns from physical assets or any property — but is not a mutual fund, NBFC deposit, or chit fund. The legal boundary matters: if an entity mobilises public funds through such pooling without SEBI registration, it violates the SEBI Act, 1992 (Section 11AA defines CIS) and the CIS Regulations, 1999.

SEBI is the sole registering authority for CIMCs. To be registered, a CIMC must: be incorporated as a company under the Companies Act, have a minimum net worth of ₹5 crore, and have its scheme documents approved by SEBI before launch. Each scheme must have a corpus of at least ₹20 crore before it can be subscribed publicly.

The distinction from mutual funds is critical: mutual funds are regulated under the SEBI (Mutual Funds) Regulations, 1996 and pool money into financial securities, while CIMCs pool into physical assets. Both are SEBI-regulated, but through separate regulatory frameworks.

Historically, CIS frauds (plantation and agro schemes in the 1990s–2000s) prompted tighter regulation. SEBI has enforcement powers to wind up unregistered CIS entities. The list of registered CIMCs on SEBI's website is the authoritative registry — exam questions test whether candidates know the registering authority and the key thresholds.