SEBI considers allowing individual mutual fund distributors to become RIAs
The Securities and Exchange Board of India, or SEBI, is thinking about letting individual mutual fund distributors (MFDs) also become registered investment advisers (RIAs).
Right now, institutions and other non-individual entities can hold both licenses, but a SEBI working group is reviewing if individuals should get the same chance, basically making it easier for MFDs to offer advice and not just sell products.
Indian MFDs could advise, risking conflicts
If this goes through, MFDs could help people with financial advice as well as product distribution.
That sounds handy, but there's a catch: it might create conflicts if MFDs push products that earn them more commission instead of what's best for you.
India has over 100,000 MFDs and just 1,048 RIAs right now, so this could shake up who gives financial advice.