Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Silly SEBI statutes

with 16 comments

I recently wrote SEBI investment adviser exam, in a chilly winter morning in Delhi on the 31st of December XA and XB. In addition I paid 25K to to get this person’s assistance in filing paperwork with SEBI for the IA licence, coz I can’t be bothered dealing with Govt. dolts.

Now that I have the certificates, it says that the validity is 3 years. Imagine, you have 200 clients several 100 crore corpus under management, and then you are not able to clear the exam (which is not easy, I have to say) after three years because of change in syllabus, then what, your clients have to leave you, sell all their holdings and go to someone else ?

Do CA’s have to write the exam every 5 years?

So, I think SEBI is foolish, and my decision is to avoid partnering with a silly regulator that SEBI is.

Note validity until 29 Dec 2020 for XA, XB says the same. 
NISM says:

I don’t have enough time in life to write these stupid papers. PMS is better option. 

Written by amitdipsite

January 17, 2018 at 10:10 am

Posted in Uncategorized

16 Responses

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  1. Hi, Amit Saheb, Greetings.
    I am not into this but with n number of Sebi certified/registered stock/investment advisors operating – I would suppose that the validity will be of renewing the membership – not taking the exams again. And, if it turns out to be truly taking the exams the next time over – it is not only absurd – it is rank Foolish. I would still like to believe that the renewal will be of the registration – asking for a fee. The fee being the ‘honey’ for Sebi. Best regards, Dua. Shaukat Ali

    shaukat ali

    January 17, 2018 at 12:18 pm

    • Greetings Sir,

      I have clarified and updated the blog post. Do read above that exam needs to be written again. Would like to see this especially in Surgery and Medicine, those who play with peoples life. Write exam every 3 years 🙂


      January 17, 2018 at 7:11 pm

      • Salam, Amit Sahab
        Height of Absurdity. Reminded of an old song ‘It happens only in India’. Dua
        PMS – Yes, yes

        shaukat ali

        January 18, 2018 at 8:17 am

  2. this is really pathetic Amy…
    Having known/reading ur post around 5/6 Years now.
    A person of your caliber. You are second to none.


    January 17, 2018 at 3:37 pm

  3. Is the CPE option no longer available ?PMS has other complications and people would simply take the Research Analyst exam route to avoid all these.


    January 18, 2018 at 3:22 am

    • Laws are unclear like documents out of date, will get that checked. Agreed with overheads of PMS


      January 18, 2018 at 3:25 am

    • People are using workarounds to manage portfolio because of heavy compliance costs of PMS


      January 18, 2018 at 3:34 am

      • I forget how I came across your blog, but I am beginning to really enjoy reading your posts. What kinds of workarounds are you specifically talking about?


        January 18, 2018 at 4:18 am

        • SEBI wants Investment Advisers to help individuals achieve their financial goals in life at each stage.

          Majority people people want to manage equity/debt portfolio for individuals which is more like PMS.

          SEBI does not want Investment Advisors to charge performance based fees, only PMS is allowed. IA can charge fixed fees or fees as a percentage of AUM. Not performance based fees like PMS or Hedge Funds.

          Hence SEBI is stifling boom in portfolio managers because of outdated and archaic laws.


          January 18, 2018 at 4:37 am

        • SEBI (Investment Advisers) Regulations have not prescribed any scale of fee to
          be charged by the Investment Adviser to its clients. It is as per the agreement
          between the client and the investment adviser. An investment adviser advising a
          client may charge fees, subject to any ceiling as may be specified by SEBI, if
          any. Further, an investment adviser shall ensure that fees charged to the clients
          are fair and reasonable.

          Got it from faqs


          January 19, 2018 at 4:04 am

  4. hi the surgery, medicine analogy 🙂

    so the difference (rather restriction) between IA and PMS is only on how fees are charged? Also doesn’t SEBI require similar 3yr exams for giving the PMS offerings? I know that PMS has a min corpus limit of 25L for an individual


    January 19, 2018 at 3:49 am

    • Laws are not clear. I have read that even PMS provider needs IA certificate this making all PMS providers illegal.


      January 19, 2018 at 3:51 am

      • Interesting..if I find any concrete info, will mail it to you

        wonderful blog



        January 19, 2018 at 12:05 pm

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