Archive · 19 Aug 2025
SEBI Proposes Reforms to Boost Investment Advisers in India
SEBI, the financial regulator in India, is trying to make it easier for investment advisers to operate.
They're changing some rules to help these advisers, like allowing them to work with more clients and making it simpler to get licensed.
Some people are concerned that these changes might affect the quality of advice.
The main goal is to help investors get better financial guidance.
The proposals include allowing advisers to show their past performance, if certified, and charge for a second opinion.
The focus is on improving the advisory business, though some worry about strict rules on advertising and how fees are collected.
SEBI is proposing changes to ease business for registered investment advisers (RIAs).
The number of RIAs has decreased, but this may reflect the departure of less serious players.
Key proposals include raising the client cap, lowering net-worth requirements, and allowing graduates from any discipline to apply for an RIA license.
RIAs will be allowed to disclose past returns if certified and requested, and charge fees for second opinions.
There are concerns about overly restrictive advertising codes and the need for standardized fee collection mechanisms.
- Who
- The Securities and Exchange Board of India (SEBI) and registered investment advisors (RIAs).
- What
- SEBI is introducing reforms to improve the business environment for registered investment advisors.
- When
- The consultation paper is open for public comments until August 28.
- Where
- India
- Why
- To facilitate ease of doing business and address practical challenges for RIAs.
Concerns about potential impacts:
Industry Viewpoints
Quality of Advice
Concerns about potential impacts:
Some are concerned that relaxing entry barriers and allowing any graduate to apply may dilute the profession's quality.
Industry Viewpoints
SEBI is taking measures such as the NISM exams to ensure the quality of candidates.
Fee Collection Mechanism
Concerns about potential impacts:
Some believe a centralized fee collection system could hinder the growth of a fiduciary advisory business.
Industry Viewpoints
SEBI may make centralized fee collection compulsory in the future.
- Client Cap (Individual RIA)
- Raised from 150 to 300
- Net-worth Requirement (Corporate)
- Lowered to ₹10 lakh from ₹50 lakh
- Minimum Qualification
- Finance graduation degree (or any discipline)
- Past Returns Disclosure
- Allowed (if requested, certified, and with disclaimer)
- Fee for Second Opinions
- Allowed