DELHI-BASED RICHA, 40, successfully cleared her registered investment advisor (RIA) certification exam in 2021. It was a moment of triumph for her after narrowly missing out by just one mark the earlier. However, the joy was shortlived. Three years later, she found herself at the starting line, needing to undergo the certification process all over again.
"I was asked to go to Chennai for the exam. The online option wasn't available. I was required to retake the entire test from scratch. It just wasn't worth the hassle, so I decided to let my licence lapse," laments a disheartened Richa.
Her story mirrors that of many others who, despite passing the RIA certification exam, chose not to renew their licences because of stringent regulatory requirements. Additionally, many financial professionals opted against pursuing the RIA certification, pointing to the high net-worth thresholds and fee structures that are not suitable for their small retail clientele.
This explains why, even 11 years after the market watchdog, Securities and Exchange Board of India (Sebi), introduced RIA regulations, the number of RIAS in the country remains shockingly low. According to data, currently, there are just 995 RIAS registerd with Sebi, which translates to one investment advisor for nearly every 200,000 investors in the country. In fact, the actual number of practicing RIAS, per experts, is much lower.
"The real number is less than 300," says Sharan Hegde, a finfluencer with more than 6 million followers across multiple social media platforms. "I work with a SaaS company that provides software to RIAS, so I have visibility into the data. This includes both individual and corporate RIAS."
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
