Story perspectives

India's Investment Advisers: Navigating Trends and Regulations

10/8/2025

Summary

Advisers Navigate Regulations

Investment advisers in India are regulated by the Securities and Exchange Board of India (SEBI) and must meet educational standards and at least five years of experience.
Advisers may operate as fee-only, commission-based, hybrid, or robo-advisors, each with distinct revenue models.
They face conflicts of interest, regulatory compliance costs, and market volatility.
Emerging trends include AI integration, robo-advisory growth, and sustainable investing.

Summary

FCA Eases Advice Rules

Financial Conduct Authority (FCA) is consulting on easing advice rules to allow firms to offer tailored nudges without full regulated advice.
Recent FCA reviews show weaknesses in automated investment services, notably disclosure, suitability assessments, and fee transparency.
The FCA demands clear explanations of algorithmic decisions and rejects "black box" approaches, signaling a push for stronger UK regulatory frameworks.

History

Historical Context

Established in 1988 and granted statutory powers in 1992, the Securities and Exchange Board of India (SEBI) emerged to regulate the securities market following the 1992 Indian stock market scam. SEBI's role in investor protection and market regulation parallels the UK's Financial Conduct Authority, which currently addresses challenges in automated investment services, underscoring the global need for transparency in financial advisory practices.

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Advisers Navigate Regulations

Investment advisers in India are regulated by the Securities and Exchange Board of India (SEBI) and must meet educational standards and at least five years of experience.
Advisers may operate as fee-only, commission-based, hybrid, or robo-advisors, each with distinct revenue models.
They face conflicts of interest, regulatory compliance costs, and market volatility.
Emerging trends include AI integration, robo-advisory growth, and sustainable investing.

1 / 3