How to Verify If a Stock Advisor is SEBI-Registered?
When it comes to choosing the right financial advisory, there’s one thing you absolutely shouldn’t compromise on—SEBI registration. In India, every genuine SEBI registered investment advisory is expected to follow a strict code of conduct, act in your best interest, and provide transparent guidance.
But with social media full of flashy “stock tips” and self-proclaimed experts, how do you know if the person guiding your investments is legit? The good news is, you don’t need to be a financial expert to figure this out.
Let’s break it down step by step.
Why SEBI Registration Matters
The Securities and Exchange Board of India (SEBI) is the official body that regulates the securities market in India. It ensures that only qualified professionals offer investment advice.
If someone is offering stock tips or personalized investment guidance for a fee, they must be registered with SEBI. If not, they’re operating illegally.
A SEBI-registered advisor is more likely to:
- Follow ethical practices
- Disclose risks clearly
- Avoid conflicts of interest
- Be accountable if things go wrong
So, don’t miss this step—it’s the first thing that helps protect your money.
Step-by-Step: How to Verify a Stock Advisor’s SEBI Registration
Step 1: Visit the SEBI Website
Go to the official SEBI website: https://www.sebi.gov.in
This is the most reliable and updated source of information. Don’t rely on forwarded screenshots or WhatsApp groups.
Step 2: Navigate to “Intermediaries/Market Infrastructure Institutions”
On the homepage, look for a menu item titled “Intermediaries” or “Market Infrastructure Institutions”.
Click on it. You’ll be taken to a page where you can search for different kinds of market players—brokers, mutual fund houses, credit agencies, and of course, investment advisors.
Step 3: Click on “Investment Advisers”
From the list, choose “Investment Advisers.” This will take you to a searchable directory of SEBI-registered advisors.
You can search by:
- Name of the advisor
- Registration number (if you have it)
- City or state
Step 4: Enter the Advisor’s Details
Type in the advisor’s full name or business name. Hit search.
If they’re registered, their name will pop up in the results along with:
- SEBI registration number
- Validity of the license
- Office address
- Contact details
Check if the license is still active and not expired.
Step 5: Cross-Check the Details
Make sure the contact details, office location, or website (if any) match what the advisor has given you. Be extra cautious if anything feels off—like a mismatch in email or a different phone number.
Ask for Proof
It’s perfectly okay to ask the advisor to share their SEBI registration certificate. A genuine advisor will be happy to do so.
You can also verify if they have a NISM (National Institute of Securities Markets) certification, which is required for SEBI registration.
Red Flags to Watch Out For
Avoid advisors who:
- Offer “guaranteed returns” on stocks
- Ask you to pay money upfront via UPI or personal accounts
- Don’t have a verifiable office or online presence
- Use social media aggressively to promote “get-rich-quick” schemes
Remember, legitimate advisors never make bold promises. Their job is to guide you—not take unnecessary risks with your money.
Final Thoughts
Choosing a SEBI registered investment advisory service is more than just ticking a box. It’s about protecting your financial well-being and trusting someone who’s legally and ethically bound to serve your best interests.
Doing a simple verification can save you from costly scams, false promises, and sleepless nights. So next time someone gives you stock advice, don’t just take their word for it—verify first. It’s your money, your future, and your right to be cautious.
