The 1% Club, Led by Sharan Hegde, Receives an RIA Licence from SEBI

The 1% Club, Led by Sharan Hegde, Receives an RIA Licence from SEBI
The 1% Club by Sharan Hegde Secures SEBI RIA Licence

At a time when the Securities Exchange Board of India (SEBI) has tightened its grip on financial influencers, well-known financial influencer Sharan Hegde's company, 1% Club, has obtained an Investment Advisor (RIA) licence. Subject to certain rules established by SEBI, the licence permits a person or business to function as an RIA, which is legally permitted to offer customers financial advice on investments in the Indian market.

Now, the company's Personal CFO division complies completely with the stringent regulations set forth by SEBI. According to Hegde, the business is now the first influencer-led enterprise to obtain a SEBI-RIA licence. Working with leading compliance and legal organisations in the nation, the process of acquiring the licence took six to eight months.

Finfluencers not Preferred Choice for SEBI

According to Hegde, people have been demanding that finfluencers register since SEBI has been harshly critical of them for the past one to one and a half years. He noted that the business currently has 45 employees and advises about 1,000 clients on financial matters. In less than a year, the firm has managed INR 1,000 crore in assets under advisory (AUA). This has been accomplished profitably by the 1% Club.

Hegde wants to continue scaling it. The company will eventually be able to employ at least 1,000–2,000 people in financial planning roles, each of whom will be able to assist 200–300 clients. The enterprise would have just touched the surface of India's needs, even if it were extremely successful.

India Need More Financial Advisors – Hegde

A financial counsel is desperately needed in India right now, Hegde opined. At the moment, only those with savings of at least INR 2 to 3 crore have a financial planner. India needs about 10 lakh financial planners, according to SEBI. We only have a thousand, though. Therefore, if you ask any middle-class Indian today, they have no financial planner and haven't ever considered what one is. Hegde went on, "So, we felt that there is a huge gap in the market to offer this as a service." Co-founder Raghav Gupta stated, "We will put what we have been preaching into practice under the Personal CFO division, which is a subsidiary in the parent company."

"Because no one likes studying, everyone has been quite critical of education corporations. Thus, we aimed to be as good as we talked. Since many individuals claim that everyone can produce content and earn money, we don't want to only teach." With the laws and compliance that SEBI has adopted, this licence is our social proof to the world that we can actually do it," Hegde stated.


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