Shri Tuhin Kanta Pandey, Chairman, SEBI, in his address at the Annual Conference of Registered Investment Advisers at ARIA Aspire 2026, highlighted the importance of unbiased, fiduciary-driven advice and the need to strengthen a trusted investment advisory ecosystem.

We quote from his address:

“India has achieved a remarkable feat in financial inclusion. Today, more Indians than ever have bank accounts and digital payment tools at their fingertips. However, the journey doesn’t end with “access.” As we look toward the future of a Viksit Bharat, the focus must shift toward financial empowerment.

Empowerment isn’t just about having an account; it’s about having access to trustworthy, unbiased, and transparent advice. Recently, SEBI highlighted the roadmap for the Investment Adviser (IA) ecosystem, balancing the need for growth with the absolute necessity of investor protection.

The State of the Ecosystem: A Transition to Institutions

Currently, India’s IA landscape is in a state of flux. We have approximately 1,000 registered advisers (470 individuals and 530 non-individuals). While the total number has dipped since 2021, there is a clear shift toward an “institutional” model.

This transition is vital. As our markets expand, investment advice can no longer exist on the fringes. We need a robust, regulated core to guide the millions of new investors entering the market.

The Challenge of the “Unregulated Voice”

One of the most pressing concerns is the vacuum left by the decline in registered advisers. When regulated professionals are scarce, investors turn to “finfluencers.”

• The Problem: Nearly 62% of prospective investors are influenced by unregulated social media voices.
• The Risk: These platforms often present opinions as expertise and speculation as strategy, distorting disciplined investor behaviour.
• The Culture: India is still evolving a culture where investors are willing to pay for professional advice, often gravitating toward “free” (and often risky) tips.

Embracing the AI Revolution

Artificial Intelligence is no longer a futuristic concept—it is reshaping advisory services today.

• What AI does well: Processing data, risk profiling, and handling routine, template-driven tasks with speed and low cost.
• What AI cannot replace: Judgment, context, and trust.

The message to advisers is clear: Embrace technology, but do not surrender judgment. In an automated world, human integrity becomes a premium asset.

SEBI’s Vision: Making Advisory Viable and Safe

SEBI is committed to a “firm but fair” approach. The goal is to make the registered advisory model scalable and attractive for professionals while maintaining high safeguards.

Key Regulatory Updates:

• Simplified Onboarding: Easier registration, relaxed documentation, and smoother transitions from individual to non-individual status.
• Operational Flexibility: Advisers can now collect advance fees (with consent), provide “second opinions” for a fee, and use the PaRRVA (Past Risk and Return Verification Agency) for performance communication.
• Stricter Boundaries: Regulated entities are now barred from associating with unregistered persons who make unauthorised claims.
• Transparency: Advisers must disclose the extent to which they use AI in their processes.

The Fiduciary Duty: Expectations from Advisers

If you are an investment adviser, your role goes beyond managing money; it’s about guiding judgment. SEBI’s expectations are rooted in four pillars:

• Fiduciary Integrity: Always act in the investor’s best interest. Trust is your primary product.
• Cultivating Responsibility: Help investors move from speculation to disciplined investing. Encourage them to ask: What is my goal? What is my time horizon?
• Shielding Against Fraud: Actively educate clients on using tools like Valid UPI and SEBI Check to avoid impersonators and cyber risks.
• High Governance: Compliance is not a burden; it is your mark of professional credibility.

The Road Ahead: SEBI SETU and Beyond

To support this growth, several initiatives are in the pipeline:

• SEBI SETU: A digital platform providing end-to-end guidance from registration to compliance.
• Harmonisation: A working group is reviewing the overlap between Mutual Fund Distributors (MFDs) and IAs.
• Light-Touch Penalties: A standardised, fair penalty structure to promote compliance while ensuring transparency and fairness.
• Common Ad Code: Ensuring consistency in how all intermediaries communicate with the public.

Conclusion

As India’s markets grow in depth and scale, the value of sound financial advice will only soar. By combining technology with trust and efficiency with empathy, registered advisers will be the architects of India’s growth story. The future belongs to those who provide clarity in a world full of noise.”

Source – SEBI