How much fee can I take in advance, and what if a client leaves early?

If a client agrees, you may take fees in advance. How far in advance is where SEBI contradicts itself, so read both.

The Master Circular says the advance may not exceed one year of fees. The Most Important Terms and Conditions, which is the document your client actually signs, says the advance may not exceed the period SEBI stipulates and that presently it is one quarter.

Both texts are live in the same document. The safer position is one quarter, because that is what you have told the client in writing.

If the client terminates early, you must refund fees pro rata for the unexpired period.

You may not charge a breakage fee. Not a cancellation charge, not an administration fee for leaving.

These rules apply to individual and HUF clients who are not accredited investors. With accredited investors, non-individual clients and institutions, the terms are whatever you agree between yourselves.