Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey expressed his concerns over the decline in the number of registered investment advisors (RIAs) on Monday.
Speaking at an event organised by the Association of Registered Investment Advisors (ARIA), he pointed out that the number of RIAs has dropped from close to 1,300 in March 2023 to close to 1,000 as of March 2026. Out of the 1,000, 470 RIAs are individuals while the remaining 530 are institutional.
Citing SEBI’s recent investor survey which showed 62% of investors are influenced by finfluencers on social media platforms, Pandey said, “As India’s investor base expands rapidly, our market needs more regulated advisors. Otherwise, the gap will be filled by unregulated voices – like finfluencers – who present opinion as expertise and speculation as strategy.”
Acknowledging a shift from individual advisors toward a more institutional ecosystem, he added that the regulator’s present challenge is to build a viable, scalable and attractive registered advisory model for qualified professionals.
He also added that the regulator is working on a standardised light-touch penalty structure aimed at encouraging compliance while ensuring transparency and fairness. “A standardised light-touch penalty structure for IAs is being worked out. This should promote compliance while ensuring transparency and fairness,” he said.
He further added that the increasing use of AI in advisory will lead to the highest impact in segments which are repetitive and template-driven, asking advisors to create a culture of responsible investing that emphasizes on helping investors to understand their investment goals, horizon, risk tolerance and distinction between speculation and investment.
The advisors also have a role in spreading awareness against fraud and cyber risk by encouraging investors to use tools like Valid UPI and SEBI Check before making any payments.
The near-term projects of the regulator (on which work is currently in progress) aimed to build a trusted and accessible advisory framework include a common advertisement code for all intermediaries, simplified NISM modules for people engaged in investment advise, a digital platform called Sebi SETU to provide simple & end-to-end regulatory guidance.