SEBI is currently undertaking a nationwide survey to boost investor participation and enhance awareness about market risks, as stated by Ananth Narayan, a whole-time member of the regulator. The survey aims to gather insights on factors that may hinder the increase in the number of investors, such as lack of awareness, access, or fear. Additionally, it will assess the level of risk awareness among new investors, including their understanding of concepts like volatility, asset allocation, and risk.
Expected to be completed by June or July 2025, the survey will be followed by a targeted investor outreach program. Narayan emphasized the importance of addressing the issue of unregistered investment advisors and research analysts exploiting the growing interest in investments. Notably, over 70,000 social media accounts misleading investors have been taken down by SEBI in the past six months.
To protect investors from fraudulent activities, SEBI is proposing the use of UPI ‘Payright’ handles to easily identify registered entities. Registered investment advisors (RIA) play a crucial role in promoting risk awareness, diversification, and asset allocation. Narayan suggested ongoing dialogue between RIAs and other stakeholders to streamline regulations and increase the number of RIAs.
Overall, SEBI’s efforts to enhance investor awareness and combat fraudulent practices demonstrate its commitment to safeguarding investor interests. The regulator’s initiatives underscore the importance of informed decision-making and risk management in the financial market.
