Sebi Introduces Measures to Strengthen Investment Advisory Ecosystem Amid RIA Decline

The Securities and Exchange Board of India (Sebi) has initiated several measures to strengthen the investment advisory ecosystem amid a decline in registered investment advisers (RIAs). These include setting up a working group to review regulatory overlaps between mutual fund distributors and RIAs, developing a standardized light-touch penalty framework, creating a common advertisement code, and launching a digital platform called SEBI SETU for regulatory guidance. Sebi aims to enhance compliance, transparency, and investor protection as India's investor base grows rapidly, while addressing concerns over unregulated financial influencers.