The number of individuals and distribution firms applying for RIA license with SEBI has gone up substantially over the last three months.
SEBI data shows that 44 individuals and entities have approached SEBI to seek RIA license during July-September this year as against 38 applications in the entire year last financial year.
In fact, as many as 20 individuals and entities have approached SEBI to register as RIA in September. Among one of the big names is Sapient Wealth Advisors and Brokers, which is India’s largest mutual fund distribution company promoted by MFDs.
"The RIA model gives you an opportunity to become better at processes. It is like getting ISO 9001 certification. A rough calculation says SEBI charges Rs.8000 per month to give you RIA branding. So, why not!," said Amit Bivalkar, MD and CEO, Sapient Wealth Advisors & Brokers.
According to the new regulations, RIAs can charge either up to 2.5% of the AUA or a maximum of Rs 1.25 lakh from a client.
