India · Investment Adviser

IA Advisory Agreement Checklist Generator

Twelve terms every Investment Adviser agreement has to cover, pre-filled with your registration, fee mode and contact details. Copy it or download it and hand it to your lawyer.

Short answer

A SEBI Investment Adviser agreement must cover, at minimum: the parties and INA registration, the client’s consent, the scope of advice, risk profiling and suitability, the fee and its SEBI limit, advance fees and refunds, conflicts of interest, no guaranteed returns, confidentiality, grievance redressal, and the IA MITC, all signed before any advice is given.

Fee mode

Adviser or firm nameSEBI IA registration numberBASL membership (optional)Contact emailContact phone (optional)Compliance officerFeeBilling

INVESTMENT ADVISORY AGREEMENT: TERMS CHECKLIST
Between [Adviser or firm name] (the Investment Adviser) and [client name] (the Client)

[ ] 1. Parties and registration
    [Adviser or firm name], SEBI-registered Investment Adviser, registration number [INA registration number]. Contact: email [email]. Compliance officer: [compliance officer name].

[ ] 2. Consent to advisory services
    The Client asks the Adviser for investment advice and agrees to the terms below. Record the date and how consent was given (eSign or written).

[ ] 3. Scope of advice
    What the advice covers (asset classes, products regulated by SEBI) and what it does not: no execution, no custody of funds or securities, no access to trading or demat credentials, no distribution commission on the advice given.

[ ] 4. Risk profiling and suitability
    The Adviser risk-profiles the Client before advising, records the Client's consent to the profile, assesses suitability for every recommendation, and re-assesses at least once a year or when the Client's circumstances change.

[ ] 5. Fees
    Fee mode: fixed (one mode per family). Fee: [amount, e.g. ₹30,000 a year]. Billing: quarterly in advance. For individual and HUF clients the fee stays within the SEBI limit, up to ₹1,51,000 per family a year. Fees are paid by banking channels only, never in cash.

[ ] 6. Advance fees, termination and refunds
    Fees collected in advance cover at most 12 months, and only with the Client's agreement. Either party may end the agreement with written notice; the fee for the unexpired period is refunded, net of any breakage fee the current SEBI rules allow.

[ ] 7. Conflicts of interest
    The Adviser discloses any financial interest, holdings, or other conflict in the securities advised on, and keeps the advisory and any distribution activity segregated.

[ ] 8. No guaranteed returns
    Investments carry market risk. The Adviser does not promise or guarantee any return.

[ ] 9. Confidentiality and data
    How the Client's personal and financial data is stored, who it is shared with, and how long records are kept (at least five years).

[ ] 10. Grievance redressal
    First contact [Adviser or firm name] at [email]. If unresolved, SEBI SCORES (scores.sebi.gov.in) and then the Online Dispute Resolution portal (smartodr.in).

[ ] 11. Most Important Terms and Conditions (MITC)
    Attach the SEBI-standardised MITC for Investment Advisers and record the Client's acknowledgement.

[ ] 12. Signatures
    Client name: ____________________   Date: __________   Signature: ____________________
    For [Adviser or firm name]: ____________________   Date: __________

Note: this is a checklist of the terms an Investment Adviser agreement has to cover, with your details filled in. It is not the SEBI-prescribed text. Reconcile it with the current Master Circular for Investment Advisers and have your lawyer or compliance officer finalise it. Not legal advice.

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The agreement is the gate, not a formality

Under the IA regime the agreement comes before advice. In practice the failure is not a missing clause, it is a client who was advised before they signed, or who signed version one when version two was live. Track the version each client accepted and stop advice until the current one is signed.

That is the check Aktai runs on every send: no signed copy of the active agreement, no advice. See how the advice gate works.

Frequently asked questions

Does a SEBI Investment Adviser need a signed agreement before advising?

Yes. The advisory agreement, with the SEBI-standardised Most Important Terms and Conditions for Investment Advisers, has to be in place before any advice is given. It is a separate document from a Research Analyst client agreement.

Is this the official SEBI agreement format?

No. It is a checklist of the terms the agreement has to cover, with your details filled in. SEBI prescribes terms through the Master Circular for Investment Advisers; reconcile against the current version and have your lawyer or compliance officer finalise the wording.

What happens when I change the agreement?

Each client has to accept the new version. Keep a record of which version each client signed and when, because an inspection asks for it. Aktai blocks advice to any client who has not signed the current version.

Can the client sign electronically?

Yes. Aadhaar eSign gives a signature with a verifiable trail. Aktai sends the agreement for eSign through your firm’s Leegality account, or lets you record acceptance in the portal.