Sebi alerts investors about unregistered entities

New Delhi: To safeguard retail investors, Sebi has taken several measures, including cautioning them against trading on stock tips given by unregistered entities, conducting probes and issuing directions against non-compliant ones, Parliament was informed on Tuesday.

Under the Sebi’s rule, no person can render investment advice unless he is registered with the capital markets regulator. Sebi (Investment Advisers) norms specify the eligibility conditions for registration, obligations and responsibilities and procedure for action in case of default, Minister of State for Finance Pankaj Chaudhary in a written reply to Rajya Sabha.

Responding to a query on steps taken by the government to protect retail investors against the frauds happening the social media in the name of giving advice as stock market experts, Chaudhary said that Sebi has issued several press releases advising investors to deal with only registered investment advisers for availing investment advisory services.