As per the information provided by the Securities and Exchange Board of India (SEBI), as of 31 October 2021, there are around 2.75 crore mutual fund (MF) investors, 7.38 crore demat account holders and 1,324 SEBI registered investment advisors (RIA).
The population of demat account holders in the country has gone from 3.59 core in 2018-19 to 7.38 crore in the current fiscal year up to 31 October 2021. The number of demat account holders has increased by 1.87 crore from 5.51 crore in the previous financial year.
This was stated by the union minister of state for finance Pankaj Chaudhary in a written reply to a question in Lok Sabha.
The significant jump seems to come mostly on the back of bourses' attractive valuations and eased interest regime of Reserve Bank of India (RBI).
The ratio of mutual fund investors and demat account holders to the registered investment advisors (RIA) in India is around 76,510: 1, the minister added.
The minister further stated that SEBI (Investment Advisers) Regulations, 2013 were notified on 21 January 2013 to strengthen the regulatory framework for investment advisors.
Subsequently, certain amendments to the Investment Advisors Regulations were notified on 3 July 2020, the minister added.
Answering a question on whether the high barriers to entry have led to the reduced number of authorized financial advisors in India, the minister stated that as per the information provided by SEBI, the registered Investment Advisors have increased from 1,298 (as of 30 June 2020) to 1324 (as on 31 October 2021).