Any idea why SEBI is killing the Investment advisor space

General
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Last time I checked - India has total of 1400 Sebi registered investment advisors or probably less than that. The joke doesn’t end there.

If any Investment advisor wants to speak at a public program, he must PAY Rs.3000!! to govt appointed BASL speak as per the SEBI’s new advertising code.

While, this in itself is a big problem of extremely over regulation to the point of killing the industry. Influencers, on the other hand have no such obligations or even any regulation to control their actions.

https://twitter.com/ActusDei/status/1655569675676274693?s=20

Infact, the above tweet says this might be applicable to all sorts of external communications. I hope this is a Joke.

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@nithin Can you share your thoughts on why this stance from the regulator on investment advisor? This space of advisors is getting shady and shady day by day and regulatory measures are making it more and more crazy

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I agree, just like TDS is deducted on FDs. No sense at all.

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These regulations are very similar to what applies to stock brokers. But the issue here is a regulatory arbitrage between being a distributor and an RIA. I hope that gets fixed.

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