REGULATION · COMPLIANCE

SEBI’s RA/IA Security Deposits 2025 — Hacks, Costs & What Changes

The deposit regime, cyber hygiene expectations, cost-of-capital math, and an implementation plan for individuals and firms.
By bataSutra Editorial · October 10, 2025
In this piece:
  • The short — who’s impacted and how
  • Deposit slabs & smart financing (illustrative)
  • Cyber hygiene: minimum viable stack
  • Cost-of-capital impact: examples
  • Rollout plan & documentation pack
  • FAQ

The short

  • Why: Deposits act as prudential buffers and behavior guardrails for client-facing advice/research firms.
  • Who: Individual and non-individual RA/IA entities; exemptions/reliefs may depend on registration class and history.
  • What changes: Higher or tiered deposits, renewal proofs, and tighter cyber controls around client data.
  • Good news: Instruments can be optimized (bank guarantee, FDR) to reduce cash drag if structured well.

Deposit slabs (illustrative) & smart financing

RegistrantClients (AUA)Illustrative depositFormOptimization
RA — Individual< 200₹2–5 lakhFDR/BGUse FDR lien; keep working capital free
RA — Non-individual200–1,000₹10–25 lakhBG + FDR mixStagger maturities, ladder renewals
IA — Individual< ₹25 cr AUA₹5–10 lakhFDROD against FDR to offset opportunity cost
IA — Non-individual₹25–100 cr AUA₹25–50 lakhBGCorporate guarantee where eligible
IA — Large> ₹100 cr AUA₹50 lakh–₹1 crBG + FDRBlend bank lines; negotiate BG margin

Note Numbers are directional; align to your registration letter and latest circulars.

Cyber hygiene — the minimum viable stack

Identity & access

  • Mandatory MFA for email, CRM, and PMS/RMS consoles.
  • Quarterly access review; no shared admin accounts.

Data & devices

  • Client data encrypted at rest; device disk encryption enforced.
  • DLP rules for PAN/Aadhaar patterns; redaction on exports.

Ops & records

  • Ticketed change management for model updates.
  • 90-day log retention; breach drill every quarter.

Cost-of-capital impact (illustrative)

CaseDepositFundingAnnual carry (8% proxy)Mitigation
Solo RA₹5 lakhOwn cash₹40,000Convert to FDR + OD; net carry ~₹10–15k
IA boutique₹25 lakh50% BG / 50% FDR₹2,00,000Negotiate BG margin; raise annual fee 10–20 bps
Mid IA₹75 lakhBG₹4–6 lakh (fees)Three-bank RfQ; link fees to CASA flows

Rollout plan & documentation pack

  1. Week 1: Confirm slab; RfQ to 3 banks for BG/FDR terms; draft Board resolution.
  2. Week 2: Freeze cyber stack; update client data policy; appoint ISMS owner.
  3. Week 3: Execute instrument; file proof; update website disclosures and client agreements.
  4. Week 4: Run breach drill; maintain deposit register & renewal calendar.
Checklist Registration letter · Net worth proof · Board resolution · BG/FDR receipts · Cyber policy · Incident runbook

FAQ

  • Can I split the deposit? Yes, subject to instrument types accepted; ensure lien/beneficiary details match format.
  • Will fees rise? Likely marginally; communicate value (security, continuity) alongside.