SEBI to rein in unsolicited investment advisers

SHIMLA: The Securities and Exchange Board of India (SEBI) will make stringent rules to rein in unsolicited investment advice, which has seen a sharp rise after the government’s demonetisation announcement.

SEBI chairman UK Sinha, who was here to inaugurate its local office, said SEBI is going to take a firm decision to control the allurement and illegal practices in market investments.

“We have been doing a consultation through a discussion paper. We have invited suggestions and will soon come out with stern rules,” Sinha told HT.

He said SEBI can’t be quiet over such practices taking place in the country. Attributing demonetisation as RBI’s mandate, he said SEBI has nothing to do with it but is keeping an eye on securities. Other SEBI officials said that there were reports of back date securities investment after the demonetisation move.

Post demonetisation, people have been receiving unsolicited investment advice through SMSes, WhatsApp, Facebook and other social media gateways. It was prevalent in the past also but post demonetisation, its frequency and significance has increased.