It is all about your hard earned money; you need someone you can trust; you want someone who has your back and not just your account. You should an advisor who has the credentials to advise you. Only SEBI Registered Advisors are with no string attached, they act independently and are not affiliated with specific investment products. They are completely transparent in all means & put your interest first.
Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted with the responsibility to regulate the Indian capital markets. It monitors and regulates the securities market and protects the interests of the investors by enforcing certain rules and regulations. Financial advisors being a crucial part of the investment process, they also have to follow certain rules and regulations. These regulations have been laid out by SEBI specifically for the financial advisors and are necessary to be followed in order to conduct business.
For an entity to be officially declared as a financial advisor, it must be registered with SEBI, complete the eligibility criteria of having a certification in financial planning (CFP) and also an educational background in finance or related fields such as accountancy, business management, commerce, etc.
Choose a Advisor not a Agent
Having a SEBI Registered Financial Advisor has a few very important connotations when it comes to choosing a financial advisor:
Trust and Credibility :
Since SEBI is responsible for regulating the financial markets in the country, it is natural that it sets some high standards for all the stakeholders involved in those markets. Financial advisors are one of the categories of those stakeholders. Thus, if SEBI approves the business conducted by financial advisors, it can be said that there is a sense of trust and credibility in the entity and thus your financial planning is in safe hands.
While choosing a financial advisor, examine his or her education, experience, credentials, and advanced degrees. Generally Advisors are more qualified than Agents or distributors.
Advisors, not salesmen :
A SEBI Registered Financial Advisor acts as an end to end financial advice provider and doesn’t merely try to sell you investment products. Helping you set goals, understanding your requirements, studying best suitable options for you are all steps in the financial planning process undertaken by an advisor based on which an advisor may suggest you some investments instead of shoving down your throat such a product that earns them the highest commission.
Transparency and Competence :
With SEBI registration comes the responsibility of disclosing all of the information related to services provided by the advisors to the clients and not keeping anything under wraps. Therefore, there is an element of transparency that needs to be religiously followed by the advisors so that the clients are sure of the decisions they make. This also display’s the advisors’ competence in taking steps and decisions while delivering advice.
Separation of Units :
The operations and advisory teams work separately in case of a SEBI registered financial advisor. Thus, there is no question of pushing any products towards the clients to earn extra. The advisory team works completely independently and gives objective decisions based on the clients’ needs. The operations department merely follows instructions and carries out the execution of the same.
We at TBNG believe at presenting you with solutions, solve your financial dilemmas and provide exceptional service to meet your goals and objectives.