Ring ring: Hello Sir, Mai Vaishali, XYZ Advisory Indore se baat kar rahi hu. Sir kya aap stock market me trade karte hai? (My name is Vaishali and I’m calling from Indore based company XYZ Advisory. Do you trade in stocks?)
Caller: Yes
Vaishali: Sir humari company aapko advisory service degi jisme ki aapko kam se kam 10% ka profit hoga daily. (Our company provides advisory service through which you can earn a minimum of 10% profit every day)
Sounds familiar right! You may have got such calls from Indore, Bhopal or Ahmedabad based advisory firms luring you to subscribe to their advisory service with a promise to make huge profits.
To ensure that people do not fall prey to such phone calls, SEBI has cautioned investors to avoid such misleading advertisements and phone calls assuring guaranteed profits in equities.
In a press release, SEBI has said, “It has come to the notice of SEBI that many entities have been luring investors through unsolicited calls/SMS and assuring guaranteed profits on the trading tips provided by them. It is observed that this activity is carried out mostly by the entities based in Madhya Pradesh and Gujarat. Hence, investors are cautioned to be wary of misleading advertisements and phone calls which solicit investments in securities market assuring guaranteed profits.”
In fact, SEBI has asked people to deal with only SEBI Registered Investment Advisers (RIAs) to avail financial advisory services. The market regulator has also urged people to take informed investment decision without being influenced by such trading tips.
SEBI has said that they have already taken action against various entities for acting as unregistered investment adviser.
Recently, SEBI has barred Indore based RIA firm Capital Via from undertaking advisory business. SEBI has found that the company was charging an annual advisory fee of Rs. 25 lakh from clients by promising an assured return of 10%.
