finpeel Answers · India · updated 2026-08-14
A fintech cannot treat mutual-fund distribution as an unregulated activity. Distribution must be carried on through the applicable mutual-fund intermediary/distributor framework, while personalised investment advice can separately require SEBI Investment Adviser registration.
The regulatory distinction between distribution and advice matters because remuneration and duties differ between the models.
If the app recommends funds based on a customer’s circumstances rather than merely executing/distributing, test whether the product has crossed into investment advice.
Regulator: SEBI / applicable mutual-fund distribution framework
Primary sources: SEBI — Mutual Funds Regulations
Directional — not legal advice. Verify with the regulator before committing.
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