7 Steps to Build a SEBI-Compliant Digital Onboarding Process
Introduction
As an RIA in India, you’re not just managing wealth — you’re also navigating one of the most regulated financial environments in the world. SEBI requires a strict onboarding flow that proves suitability, consent, documentation, and disclosure. One slip can cost you heavily in audits or penalties.
The best way to stay compliant and client-friendly? Build a digital onboarding process that checks every box.
Here’s how.
Step 1: OTP Verification
Start by validating the client’s identity via email or mobile OTP. This serves as the gateway to all further digital documents, ensuring authenticity from the first click.
Step 2: DigiLocker or KRA KYC Fetch
Offer clients the option to fetch their verified KYC details from DigiLocker (ideal for Aadhaar-linked users) or from a SEBI-registered KRA. This saves time, avoids duplication, and reduces drop-offs.
Step 3: Risk Profiling Questionnaire
Customize a digital form to capture client risk appetite. Ensure the score is:
- Timestamped
- Auto-calculated
- Stored in the client file for SEBI audits
Step 4: Nominee and FATCA Details
Add fields for nominee name, relation, and optional FATCA declaration. Most advisors forget this step or treat it casually — SEBI doesn’t.
Step 5: Auto-Generated Agreement
Generate a PDF agreement that includes all regulatory clauses, advisory fees, services offered, and disclosures. It should:
- Include your branding/logo
- Be pre-filled with client details
- Be sent for Aadhaar-based eSign
Step 6: Aadhaar eSign and IPV Recording
For full compliance, eSign via an NSDL- or Digio-integrated platform. For IPV (In-Person Verification), offer either a live call or recorded video with a time-stamped audit log.
Step 7: Internal Checker Review and Confirmation
Before final approval, route the onboarding file to an internal checker (this could be you or a partner). Once verified, the client receives a digital welcome pack with agreement copy.
Why This Matters
A digital onboarding system:
- Reduces compliance errors
- Saves 3–5 hours per client
- Impresses clients with professionalism
- Prepares you for surprise SEBI inspections
Want a Pre-Built Flow You Can Start With?
Download our free guide: “The RIA’s Guide to Seamless Client Onboarding”.
It includes:
- Templates for each step
- A SEBI-compliance checklist
- A visual flowchart used by top-performing RIAs
