New Delhi, March 16 (NationPress) The Securities and Exchange Board of India (SEBI) has established a working group to assess the regulatory framework regarding mutual fund distributors (MFDs) and to tackle the overlaps between MFDs and investment advisers (IAs), as announced by chairman Tuhin Kanta Pandey on Monday.

During the ARIA Aspire 2026 event, Pandey noted that the market regulator is striving to refine the regulations and clarify the distinct roles of various financial intermediaries.

"This working group will analyze current regulations and propose methods to minimize the overlaps between mutual fund distributors and registered investment advisers," he stated.

Additionally, SEBI is in the process of developing a unified advertisement code applicable to all intermediaries, aiming to enhance consistency in investor communication and alleviate operational challenges within the sector.

The regulator is also gearing up to unveil a new digital platform named SEBI Setu, which aims to offer straightforward, comprehensive regulatory guidance to investment advisers.

"This platform is anticipated to assist advisers in comprehending compliance requirements better and streamline regulatory procedures," he remarked.

Moreover, SEBI plans to introduce a standardized and simplified penalty framework for investment advisers, aimed at reducing compliance burdens. The organization is also working to simplify the certification process managed by the National Institute of Securities Markets (NISM) for individuals involved in investment advice, including those in sales and ancillary roles.

Pandey highlighted that these initiatives are particularly relevant as the number of registered investment advisers in India is on the decline. He expressed concern over this trend, especially given the rapid expansion of the country’s investor base.

Currently, India boasts approximately 1,000 registered investment advisers, comprising around 470 individual advisers and nearly 530 non-individual entities.

Pandey cautioned that if the number of regulated advisers does not increase, there is a risk of unregulated influences filling the void, particularly from financial influencers on social media.

He pointed out that many of these “finfluencers” often present their opinions as expert advice and speculation as legitimate investment strategies, which could mislead investors.

Referring to SEBI’s investor survey, Pandey indicated that nearly 62 percent of potential investors are swayed by finfluencers.