Sebi cautions investors against unauthorised advisors

Sebi cautions investors against unauthorised advisors

The Securities and Exchange Board of India (Sebi) has cautioned investors against unauthorised electronic platforms and also against dealing with unregistered investment advisors and research analysts.

 “It has come to the notice of Sebi that certain electronic platforms are facilitating fund raising on digital platforms like websites and other internet platforms, which are similar to the platforms of stock exchanges. These digital platforms are neither authorised nor recognised under any law governing the securities market. Investors are hereby cautioned that all dealings on such unauthorised electronic platforms would be in contravention of the relevant securities laws,” Sebi said.

General public should not trade in the securities markets based on the tips/recommendations provided by unregistered investment advisors/research analysts and should not get attracted or lured by such trading tips and stock specific recommendations received through short message services (SMSs)or through any public media including websites or through any other social networking media. Public in general is advised to check the registration status of the entity/person on the Sebi website before availing the investment advisory services/research services, Sebi added.

The regulator has also cautioned investors against leagues/schemes/competitions, which may involve distribution of prize monies/. “It has come to the notice of Sebi that various entities are soliciting investors by offering leagues/schemes/competitions related to securities markets. Some of the schemes may involve distribution of prize monies.

Participation in such schemes including sharing of confidential and personal trading data is at investors'  own risk, cost and consequences as such schemes are neither approved nor endorsed by Sebi/Sebi recognised Exchange(s),” the regulator said.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)