NISM-Series-X-A: Investment Adviser (Level 1) · Key Regulations

SEBI (Investment Advisers) Regulations, 2013 Summary for NISM X-A

Updated 11 October 2026

The SEBI (Investment Advisers) Regulations, 2013 require anyone who gives investment advice for consideration to register with SEBI. They set qualification, certification and net worth rules, differ for individuals and non-individuals, and lay down duties such as risk profiling, suitability, disclosures and record keeping. Learn the numbers and conditions exactly.

Understand SEBI (Investment Advisers) Regulations, 2013

An investment adviser is a person who gives investment advice to clients for consideration, meaning for a fee. The definition also covers anyone who holds themselves out as an investment adviser. The Regulations exist so that advice is given only by qualified, accountable people, and in the client's interest.

The Regulations split advisers into two groups. An individual adviser is a natural person. A non-individual adviser is a firm, such as a company, LLP or partnership. Each non-individual adviser must have a principal officer, who is responsible for the advisory business and must meet the qualification and certification rules. Many exam questions test which rule applies to which group.

To register, you need the right qualification, NISM certification and minimum net worth. The qualification can come through one of these routes:

A post-graduate degree or diploma in the fields listed in the Regulations (such as finance, accountancy, economics, commerce and similar areas) from a recognised institution.
A graduate degree, with the experience conditions the Regulations specify. Some graduate routes need 5 years' experience.
A professional qualification of the kind listed in the Regulations.

Experience alone does not replace the qualification, and it never replaces NISM certification. Check your workbook for the exact list of fields and conditions.

Net worth acts as the capital adequacy requirement. It gives a financial cushion and shows the adviser can run a compliant business. The requirement is higher for non-individuals because they run larger operations.

After registration, the adviser has continuing obligations. These include a written agreement with the client, risk profiling, advice that is suitable for the client, disclosure of conflicts of interest and fees, keeping records, and handling complaints. The adviser must also keep advisory activity separate from distribution, so that advice is not compromised by commission.

SEBI has recognised BSE Administration and Supervision Limited (BASL) as the administrative and supervisory body for investment advisers. Treat the Regulations as a checklist: who can apply, what they need, and what they must do afterwards.

Key formulas to remember

Minimum net worth: individual adviser: Individual investment adviser: net worth ≥ ₹5,00,000; Individual advisers have had a net worth requirement since the original 2013 Regulations. The 2020 amendment revised the framework but did not introduce this requirement. Do not mix it with the non-individual figure. Check the current NISM workbook for the exact wording.
Minimum net worth: non-individual adviser: Non-individual investment adviser: net worth ≥ ₹50,00,000; The original 2013 figure was ₹25 lakh, now superseded. The current figure is ten times the individual figure. A common trap is to swap the two. Check the current NISM workbook for the exact wording.
Certification requirement: Individual advisers and principal officers: NISM-Series-X-A and X-B; Both must be passed. Other persons associated with giving investment advice in a non-individual adviser also need the prescribed NISM certification.
Qualification and certification: Prescribed qualification + NISM certification; The qualification is one of these routes: a post-graduate degree or diploma in the listed fields from a recognised institution; a graduate degree with the experience conditions the Regulations specify (5 years for some routes); or a professional qualification. Experience alone does not replace the qualification or the certification. Check the workbook for the exact conditions.
Certificate validity: NISM certificate valid 3 years from the date of examination; Advisers must keep certification current. Do not confuse this with the adviser's SEBI registration.
Record keeping: Maintain records of advice, risk profile and agreements for at least 5 years; This follows the record-keeping provisions of the Regulations. Records must be available for SEBI inspection. Confirm the exact wording in your workbook.

How to solve SEBI (Investment Advisers) Regulations, 2013 questions

Most questions are direct recall or short scenarios. Use the same sequence each time so you do not mix up the two adviser types.

1Identify who the question is about: individual adviser, non-individual adviser, principal officer or associated person.
2Identify the stage: registration, eligibility, ongoing obligation or inspection and records.
3Recall the matching rule: qualification, certification, net worth or duty.
4Check the exact figure or condition, such as ₹5 lakh versus ₹50 lakh, or X-A and X-B together.
5Read each option for traps such as swapped figures, outdated figures, 'either/or' where the rule says 'both', and distribution-linked advice.
6Eliminate options that conflict with client interest or suitability. Pick the one that fits the Regulations exactly.

Quickest way: Two-column memory grid

When to use it: Use when the question asks for a figure or a requirement and you have under a minute.

Picture two columns: individual and non-individual.
Write the net worth in each: ₹5 lakh and ₹50 lakh.
Add the common requirements to both columns: qualification, NISM X-A and X-B.
For duty questions, ask: does this protect the client? Risk profiling, suitability, disclosure and records do.
Reject options that allow advice and commission on the same client without separation.

Common mistakes in SEBI (Investment Advisers) Regulations, 2013

Swapping the net worth figures between individual and non-individual advisers.
Both numbers look similar and are learned together.
Fix: Remember the pair: individual ₹5 lakh, non-individual ₹50 lakh. The firm needs ten times more.
Thinking only NISM X-A is needed.
Students study X-A and forget that the Regulations require both levels.
Fix: Individual advisers and principal officers must pass both X-A and X-B.
Treating NISM certification and SEBI registration as having the same validity.
Both are called 'valid for a period' in study notes.
Fix: The NISM certificate is valid for 3 years from the date of the exam. Keep it separate from registration status.
Assuming a person who gives free general tips needs no registration under any circumstances.
Students read 'for consideration' and stop thinking.
Fix: The definition also covers anyone who holds themselves out as an investment adviser. Read the scenario for that wording.
Ignoring the principal officer in a non-individual adviser.
Questions focus on the firm, so the person is overlooked.
Fix: A firm must have a principal officer who meets the qualification and certification rules.
Believing an adviser can freely earn commission and advice fees from the same client.
Students mix up advisers with distributors.
Fix: The Regulations require segregation of advisory and distribution activity to manage conflict of interest.

Worked examples

Example 1

What is the minimum net worth required for a non-individual investment adviser under the SEBI (Investment Advisers) Regulations, 2013, as amended in 2020? (a) ₹5 lakh (b) ₹25 lakh (c) ₹50 lakh (d) ₹1 crore

Show the solution

The question is about a non-individual adviser, such as a firm.
Recall the current pair: individual ₹5 lakh, non-individual ₹50 lakh.
Option (a) ₹5 lakh is the individual figure, so it is a swap trap.
Option (b) ₹25 lakh was the original 2013 figure and has been superseded by the amendment.
Option (d) ₹1 crore is larger than the non-individual requirement.
Option (c) ₹50 lakh matches.

Answer: (c) ₹50 lakh.

Example 2

Meera holds a post-graduate degree in finance and has six years of experience in equity research. She wants to register as an individual investment adviser. Which of the following must she also satisfy? (a) NISM X-A only, with no net worth requirement (b) NISM X-A and X-B certification and minimum net worth of ₹5 lakh (c) NISM X-B only and net worth of ₹50 lakh (d) Only a net worth of ₹5 lakh, since her experience replaces certification

Show the solution

Meera's post-graduate degree in finance is a qualification route, so that is covered. Her six years of experience does not add anything by itself.
Individual advisers must still hold NISM certification: both X-A and X-B. This rules out (a) and (c).
Option (d) is wrong because experience does not replace certification.
Individual net worth is ₹5 lakh, not ₹50 lakh, which also rules out (c).
Option (b) matches the certification and net worth rules.

Answer: (b) NISM X-A and X-B certification and minimum net worth of ₹5 lakh.

Exam tips

Memorise the two net worth figures and the words 'individual' and 'non-individual' next to them. Questions often change only these words.
Watch for 'and' versus 'or' in options about X-A and X-B. The rule is both.
On a 2-mark caselet question, a wrong answer costs twice as much as on a 1-mark question, so eliminate before you guess.
In scenarios, check three things in order: qualification, certification, then net worth.
For duty questions, choose the option that protects the client: disclosure, suitability, segregation, record keeping.

Practice questions from Key Regulations

SEBI (Investment Advisers) Regulations, 2013: frequently asked questions

What is the net worth requirement for investment advisers under SEBI rules?

Under the current Regulations, an individual investment adviser needs a net worth of at least ₹5 lakh and a non-individual adviser needs at least ₹50 lakh. Individuals have had a net worth requirement since the original 2013 Regulations. The original figure for non-individuals was ₹25 lakh, which has since been superseded. Check the current NISM workbook for the exact wording.

Which NISM exams are required to register as an investment adviser?

Individual advisers and principal officers of non-individual advisers must pass both NISM-Series-X-A and X-B. The certificate is valid for 3 years from the date of the examination.

Who needs to register under the SEBI Investment Advisers Regulations, 2013?

Any person who gives investment advice for consideration must register. This also includes anyone who holds themselves out as an investment adviser by any means.

What is the difference between an individual and a non-individual investment adviser?

An individual adviser is a natural person. A non-individual adviser is a firm, such as a company, LLP or partnership, and needs a principal officer. The net worth requirement is also higher for non-individuals.