SEBI Flags Drop In Registered Investment Advisers, Warns Of Rising Unregulated Influence

The Securities and Exchange Board of India (SEBI) has raised concerns over a decline in the number of registered investment advisers, even as the investor base continues to grow.

Speaking at Aspire 2026, an event held in Mumbai by the Association of Registered Investment Advisers, SEBI Chairman Tuhin Kanta Pandey said the gap is being filled by unregulated sources such as influencers who present opinions as expertise and speculation as strategy. He noted that this trend affects investor behaviour, reduces discipline, and impacts trust in the system. He said that while India has expanded financial inclusion, the next phase requires financial empowerment supported by advice that is transparent and aligned with long-term investor interests.

With about 1,000 registered advisers, he said the advisory model needs to become viable and scalable to attract professionals. SEBI has eased eligibility norms, simplified documentation, and enabled a smoother transition to non-individual entities. Advisers can now share certified past performance data directly with clients. He also called for awareness of fraud risks and the use of verification tools before payments.