Sebi allows exchanges to regulate registered investment advisers

Advisors say move can help curb mis-selling through stock tips

The Securities and Exchange Board of India (Sebi) has allowed stock exchanges to set up subsidiaries to regulate registered investment advisors (RIAs). The market regulator in a circular said the decision was taken considering the growing number of RIAs, which numbered 1,136 as on March 19, 2019.

Existing RIAs say the move could help control the misuse of the RIA model by stock tippers, as there have been a number of cases where clients have been charged exorbitant fees and promised unrealistic gains from stock tips.

“This move has primarily come because of tip-based mis-selling. This is a good move for genuine