(Bloomberg) -- More than one out of every three investment advisers in India are giving guidance to small investors on equity and debt transactions without registering themselves with the country’s capital market regulator as required by law.

“There are large numbers, 35% of investment advisers still not registered,” Madhabi Puri Buch, chairman at the Securities and Exchange Board of India, said at an industry event in Mumbai Wednesday. She added that the regulator is powerless as many people who provide research and advice to investors have chosen to ignore basic compliance of having themselves registered.

The comments from Buch , the first woman to head India’s markets regulator, come as the south Asian country continues to see an unprecedented retail investing boom and bigger participation of individual investors in equity trading. Stocks in India are set to outperform their emerging market counterparts and Asian peers for third consecutive year.

“We need the good guys to come to us and tell us what are the malpractices in the market,” Buch said. India has potential to have a million investment advisers but the industry groups need to share their feedback and suggestions with the regulator, she said.


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