SEBI has cautioned investors not to deal with unregistered financial intermediaries and research analysts. The market regulator has asked investors to deal with only SEBI registered investment advisers (RIAs) to avail financial advisory services.
In a press release, SEBI said, “The general public is hereby cautioned to deal with only SEBI registered investment advisers and research analysts for availing investment advisory services/ research services. The details of SEBI registered investment advisers and research analysts are available on the SEBI website www.sebi.gov.in The public in general are advised to check the registration status of the entity/person on the SEBI website before availing the investment advisory services/ research analysts services.”
Further, the market regulator has said that no person should act as an investment adviser unless he/she obtain a certificate of registration from SEBI under RIA regulation. “Acting as such without registration with SEBI may entail initiation of action as deemed appropriate under the SEBI Act, 1992,” cautioned SEBI.
So far, the market regulator has taken action against 7 unregistered individuals and entities – Mansoor Rafiq Khanda, Firoz Rafiq Khanda, Moneyword Research and Advisory, Ravi Chouksey, Global Mount Money Research and Advisory, Asian Corporate Consultancy, HBJ Capital Services and Orange Rich Financials for providing investment services to the general public.
Earlier in June, SEBI Chief UK Sinha has expressed displeasure regarding intermediaries acting as both distributor and advisor by avoiding registering with SEBI. He was speaking at the CII Mutual Fund Summit in Mumbai. He said, “The whole idea behind SEBI RIA regulation was that we should move towards a system where the customer is paying to advisor for the services being rendered. Many countries have started this practice. The best example is UK or Australia. We have found that there are agencies which are distributing products and are also advising. It may be happening in smaller towns in a bigger manner. This is not acceptable to SEBI in the long run.”
295 entities/individuals have registered themselves as RIAs since the SEBI RIA rules came into effect in 2013.
