SEBI asks public to deal with only SEBI-registered investment advisers and research analysts
SEBI has issued a public notice asking the general public to deal with only SEBI-registered investment advisers and research analysts for availing investment advisory services/research services. The details of such registered investment advisers and research analysts are available on the website www.sebi.gov.in.
The public in general are advised to check the registration status of the entity/person on the SEBI website. One should also be wary of trading in the securities markets based on the tips/recommendations provided by unregistered entity/person, and should not get 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.
Further, the public in general is cautioned to take informed investment decisions without being influenced by any such messages or by any other misleading advertisements through websites or any other public media, mass messaging, emails and telephone calls that solicit investments and/ or promise unrealistic returns.
It may be noted that under the SEBI Act, 1992, read with SEBI (Investment Advisers) Regulations, 2013, and SEBI (Research Analysts) Regulations, 2014, no person shall act as an investment adviser or a research analyst unless he has obtained a certificate of registration from the Board under these regulations. Acting as such without registration with SEBI may entail initiation of action as deemed appropriate under SEBI Act, 1992.
SEBI has taken action against seven entities for providing investment advice to public without obtaining registration with SEBI, directing them to: 1. cease and desist from acting as investment advisers and cease to solicit or undertake such activities or any
other unregistered activity in the securities market, directly or indirectly, in any manner whatsoever 2. immediately withdraw and remove all advertisements, representations, literatures, brochures,
materials, publications, documents, websites, etc., in relation to their investment advisory activity