MF News India has only one investment adviser for 76,500 stock/MF investors: GOI

India has only one investment adviser for 76,500 stock/MF investors: GOI

There are only 1324 registered investment advisers compared to 2.5 crore mutual fund investors and 7.38 demat account holders, said the Ministry of Finance.

Team Cafemutual Dec 15, 2021

The Government of India acknowledges the dearth of financial advisers in India.

In response to a question raised in Lok Sabha on high entry barrier to become authorized financial advisors in India, Pankaj Chaudhary, Union Minister of State for Finance said that there are 2.75 crore mutual fund investors, 7.38 crore demat account holders and 1324 registered investment advisers (RIAs).

He said that the ratio of mutual fund investors and demat account holders to RIAs is 76,510:1. This means there is only one RIA for over 76500 capital market investors.

The minister further said that SEBI (Investment Advisers) Regulations, 2013 were notified on January 2013 in order to strengthen the regulatory framework for investment advisers. Subsequently, certain amendments to the Investment Advisers Regulations were notified on July 2020, the minister added.

Like what you are reading?

Login to get instant access to this article and many other such articles on business development, success stories and industry updates.

Don't worry ... it's FREE!

Have a query or a doubt?
Need a clarification or more information on an issue?
Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

Latest Articles

MF quarterly AAUM just short of Rs.60 lakh crore

Your bulletin for the day

Indore's MFD Association appoints Rajesh Kulwal as the new president

Consolidated account statement in MFs to be sent through email as preferred mode: SEBI

Impact of inclusion of Indian Bonds in JP Morgan Index on debt funds

SEBI to introduce simple regulations to facilitate growth of passives

SEBI to allow fund houses to launch passive hybrid funds

Aditya Birla Sun Life AMC reappoints A Balasubramanian as MD and CEO

MFDs should avoid reaching out to SEBI officials for KYC related issues of clients: AMFI

Reminder to submit your annual Declaration of Self-Certification by June 30

Click to clap

Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.

5 Comments

Prashant · 2 years ago `

So now they are forcing RIA on our investors? They brought direct plans and reduced TER to reduce MFD income and increase AMC profits. Now they want to maximise AMC profits so they are forcing RIA model. This discussion in loksabha means it is done now. They never discussed anything related to MFDs who brought this industry to where it is right now. This use and throw policy of these corporates and government also feeding the corporates is a shame to our country.

Sharath Mohandas · 2 years ago `

I support Prashanth's view.

Cyprian GABRIEL SEQUEIRA · 2 years ago `

i support Prashant sirs views

Sawai Singh · 2 years ago `

I am in consent view of Prashant B's.

Kamal · 2 years ago `

They should allow RIA to carry on his existing MFD license. If one becomes SEBI regd RIA tehn his MFD ARN will be forfeited and all the hard work done is gone.

More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.

POLL

MORE POLLS

As regards Portfolio Management Services (PMS), what is your status

Actively selling PMS

Not selling PMS but considering it seriously

Not selling PMS and not considering it either

EVENTS FORUMS