In India, there is only one Registered Investment Advisor (RIA) for more than 76000 Mutual Fund investors and Demat account holders, according to data shared by the Government in Lok Sabha.
In a written reply to a query in Lok Sabha on Monday (December 13, 2021), Minister of State in Ministry of Finance Pankaj Chaudhary said, “As per the information provided by Securities and Exchange Board of India (SEBI), as on October 31, 2021, there are around 2.75 Crore mutual fund investors, 7.38 Crore Demat account holders and 1324 SEBI Registered Investment Advisors (RIA).”
“The ratio of Mutual Fund investors and Demat Account holders to the Registered Investment Advisors (RIA) in India is around 76,510:1,” he added.
As compared to the last financial year, as many as 187 lakh new demat accounts were opened in the current FY till October 31, 2021. Chaudhary said that the total Demat Accounts till October 31, 2021 was 738 lakh.
In previous financial years, there were total 359 lakh demat accounts in 2018-19, 409 lakh in 2019-20 and 551 lakh in 2020-21, the minister said.
The Govt had notified SEBI (Investment Advisers) Regulations, 2013 on 21st January 2013 to strengthen the regulatory framework for Investment Advisers. Subsequently, certain amendments to the Investment Advisers Regulations were notified on 3rd July 2020.
As per the information shared by SEBI, the registered Investment Advisers have increased from 1298 (as on June 30, 2020) to 1324 (as on October 31, 2021), Chaudhary said.