𝐇𝐨𝐰 𝐈𝐧𝐝𝐨𝐫𝐞 𝐡𝐚𝐬 𝐛𝐞𝐜𝐨𝐦𝐞 𝐭𝐡𝐞 𝐡𝐮𝐛 𝐨𝐟 𝐮𝐧𝐫𝐞𝐠𝐢𝐬𝐭𝐞𝐫𝐞𝐝 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐬𝐨𝐫𝐬

n a recent article by moneycontrol.com, the rise of unregistered investment advisors in Indore is explored. The city, known for its educational institutions and affordable infrastructure, has become a hotspot for these advisors, drawing attention from the Securities and Exchange Board of India (SEBI).

Securities and Exchange Board of India (SEBI) has issued nearly 40 warning letters to unregistered investment advisors in the past six months, with around 35 of these entities based in Indore. Notable names among these advisors include 𝐋𝐞𝐚𝐫𝐧𝐨𝐯𝐚𝐭𝐞, 𝐁𝐍 𝐅𝐚𝐜𝐭𝐨𝐫 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞𝐬, 𝐌𝐨𝐧𝐞𝐲𝐛𝐮𝐥𝐥 𝐆𝐥𝐨𝐛𝐚𝐥 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡, and others. Many individuals have also been warned to desist from unregistered advisory activities or face further action.

Kapil Jain, a chartered accountant in Indore, explains that the abundance of MBA graduates in the city and affordable real estate make it easier for these unregistered advisors to operate. He notes that many fresh graduates may not even realize they are working for illegal entities.

Sumit Agrawal, our Founder and Managing Partner and a former Securities and Exchange Board of India (SEBI) officer highlights the need for Securities and Exchange Board of India (SEBI) to analyze data from various regions to determine if this trend is isolated to specific cities or a nationwide issue. He adds that the growing number of advisors in Indore and Bhopal reflects the state’s increasing financial literacy and demand for personalized financial guidance.

The proliferation of unregistered investment advisors in Indore is a complex issue driven by economic and educational factors. As regulatory bodies continue to crack down on these entities, there is a pressing need for enhanced financial literacy and regulatory oversight. Regstreet Law Advisors continues to monitor and address these developments to ensure a safer investment environment.