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.

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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.

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