Yes, India needs a million investment advisers – properly regulated ones

livemint.com:

₹46 trillion as of August this year. The number will only swell as more investors, especially from non-metro cities, delve into mutual funds and stocks.

Buch has highlighted that 35% of investment advisers operate without having registered with the Sebi, placing countless uninformed investors at risk. Having a background in both investment banking and advisory sectors, Buch wants the 'good guys' in the Registered Investment Advisers, or RIAs, business to report market malpractices and collaborate on solutions.

The rise of another unregulated financial influencers in the form of financial influencers on social platforms further complicates this challenge. While Buch has suggested corporatizing the advisory business to enhance investor protection, questions remain about its efficacy given the number of retail investors, their ticket size of transactions and investments, and their limited ability to pay for investment advice.

Several Sebi-recognized investment advisers have voiced concerns over the complex regulatory environment, emphasizing the challenges smaller firms face due to compliance requirements. Sebi on its part has proposed to address some of their concerns including on making claims to potential clients with the setting up of a Performance Validation Agency to check out on the claims of investment advisers.

Even if that proposed agency is housed outside of Sebi, it would be a dangerous territory to wade into as long as investment advice is fair, clear and not misleading – the principle which guides the UK regulator, Financial Conduct Authority, or FCA. India’s investment advisers – both regulated and the unsupervised ones – also need to recognize that they have so far been operating in a far more permissive