Investors alert! SEBI issues important note of caution regarding unsolicited investment tips
Markets regulator Securities and Exchange Board of India (SEBI) has issued a note of caution to investors against unsolicited investment tips.
Markets regulator Securities and Exchange Board of India (SEBI) has issued a note of caution to investors against unsolicited investment tips. Securities and Exchange Board of India has said that it has come to the notice of the Securities and Exchange Board of India (SEBI) that unsolicited messages containing stock tips/investment advice with respect to listed companies are increasingly being circulated through bulk SMS, websites and social media platforms like WhatsApp, Telegram, etc.
"Such messages are sent to investors and general public usually recommending to deal in specific stocks of listed companies, indicating target prices and giving fraudulent, misleading/false information relating to listed companies, inducing them to dealing these stocks," SEBI added.
Further, SEBI says, "The circulation of such misleading messages is not only detrimental to the interest of the investors but also adversely affects the integrity of the securities market."
Advice/Caution to investors from SEBI
SEBI says, "All investors and the general public are hereby advised/cautioned not to rely on such unsolicited stock tips/investment advice circulated through bulk SMS, websites and social media platforms."
"Investors are further advised to exercise appropriate due diligence before dealing in the securities market," SEBI added.
Notably, Zee Business did a special campaign 'Market Mafia' against such traders who try to tap investors through lucrative returns and dupe them. After Zee Business campaign, SEBI passed multiple orders on the issue and barred many such firms and their proprietors.
Recently, the Securities and Exchange Board of India (Sebi) had announced that mutual funds/AMCs shall disclose the risk-o-meter along with portfolio disclosure for all their schemes on their respective websites and on the AMFI website within 10 days from the close of each month. Mutual fund schemes will be evaluated by the investors on the basis of a 'risk-o-meter' on a monthly basis beginning January 1.
Any change in the risk-o-meter shall be communicated by way of notice-cum-addendum and by way of an e-mail or SMS to the unit holders of that particular scheme. The risk-o-meter will have six levels of risk for mutual fund schemes -- low risk, low to moderate risk, moderate risk, moderately high risk, high risk and very high risk. The very high risk category has been added to the five other categories.
Sebi, based on the recommendations of the Mutual Fund Advisory Committee (MFAC), has reviewed the guidelines for product labelling in mutual funds.
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