SEBI Cracks Down On Unregistered Investment Advisers
Dalal Street Investment Journal|July 03, 2023
While there may be a few individuals offering objective and reliable advice, there is a higher proportion of influencers, about seven out of ten, who may be motivated by factors other than the investors' best interests. This has been leading to financial frauds and advice that harms the investment plans of those who want to participate in the equity market. As such, SEBI's red flag has come at the right time. But will this move be truly beneficial for those who are complying with the regulations? This special report by Bhavya Rathod takes a deeper look at the situation.
Bhavya Rathod
SEBI Cracks Down On Unregistered Investment Advisers

The Securities and Exchange Board of India (SEBI) has been cracking down on unregistered investment advisers in recent years. In fact, over the last one month, a few well-known unregistered investment advisers have faced penalties, suggesting that this could be the beginning of a regulatory crackdown by SEBI on individuals offering financial advice without proper registration. Recently, Finance Minister Nirmala Sitharaman also acknowledged the concerns regarding financial influencers in India and cautioned about the risks associated with Ponzi apps that claim to provide financial solutions. While there is currently no proposal to regulate these financial influencers, she emphasised the importance of exercising caution. The minister highlighted that while there may be a few individuals offering objective and reliable advice, there is a higher proportion of influencers, about seven out of ten, who may be motivated by factors other than the investors’ best interests.

SEBI’s crackdown on unregistered investment advisers has been met with a mixed response. Some investors have welcomed the move, while others have expressed concerns that it could stifle innovation in the financial services industry.

Nevertheless, the benefits of SEBI’s crackdown on unregistered investment advisers outweigh any potential drawbacks. By cracking down on unregistered investment advisers, SEBI is helping to protect investors from frauds and ensure that they receive sound financial advice. This is a positive development and we believe that it will help to promote the growth of the Indian securities market in the long run. There are various reasons why we appreciate SEBI’s actions against unregistered investment advisers, one of them being that these are in the interest of the overall investment landscape. Some of the other reasons are outlined below:

Esta historia es de la edición July 03, 2023 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.

Esta historia es de la edición July 03, 2023 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.

MÁS HISTORIAS DE DALAL STREET INVESTMENT JOURNALVer todo
"The Future Of Mutual Funds Looks Promising"
Dalal Street Investment Journal

"The Future Of Mutual Funds Looks Promising"

Given that the current landscape of mutual funds is dynamic and evolving, Rashida Kalolwala, Coo, Edelweiss Mutual Fund, states in this interview that the shift towards digitalisation and the emphasis on transparency are some of the factors that will further propel the growth of the mutual fund industry

time-read
4 minutos  |
May 20, 2024
ETF Vs Stock Liquidity
Dalal Street Investment Journal

ETF Vs Stock Liquidity

Exchange traded funds (ETFs) have undeniably revolutionised the investment landscape for both investors and financial services professionals alike. They offer opportunities to diversify portfolios, manage risk more effectively, and reduce investment costs. However, to fully harness these benefits, it's crucial to dispel confusion and misconceptions surrounding ETFs Liquidity. The article examines the working of ETFs, their liquidity and how investors can capitalise on them

time-read
7 minutos  |
May 20, 2024
Road To Prosperity Through Mutual Funds
Dalal Street Investment Journal

Road To Prosperity Through Mutual Funds

In the pursuit of financial freedom and wealth creation, mutual funds have emerged as a beacon of opportunity for investors in India.

time-read
2 minutos  |
May 20, 2024
Risk Profiling in Mutual Funds
Dalal Street Investment Journal

Risk Profiling in Mutual Funds

Whether you lean towards equity, debt or hybrid investments, recognising your risk tolerance is paramount. By conducting a risk profile assessment, you gain foresight into potential investment risks, mitigating any future unease before it arises. Rakesh Deshmukh takes a closer look at the scenario to see how it works

time-read
7 minutos  |
May 20, 2024
Global Equities Rise Amid An Unsurprising Earnings Season
Dalal Street Investment Journal

Global Equities Rise Amid An Unsurprising Earnings Season

The S&P 500 Index approached its historical peak and marked its third consecutive week of positive performance in mid-May. Concurrently, other major indices also experienced gains, with value stocks surpassing growth-focused equities.

time-read
2 minutos  |
May 20, 2024
Commodity Traders To Monitor Key Indicators For Favourable Trade
Dalal Street Investment Journal

Commodity Traders To Monitor Key Indicators For Favourable Trade

In the past fortnight, the commodity market oscillated between gains and losses, driven by statements from some FOMC officials emphasising a \"higher-for-longer\" approach to monetary policy, juxtaposed with softer economic data from the US supporting arguments for the Federal Reserve to start monetary easing this year.

time-read
2 minutos  |
May 20, 2024
Understanding How Businesses Get Premium Valuations
Dalal Street Investment Journal

Understanding How Businesses Get Premium Valuations

Valuation premium is like the extra amount a buyer is willing to pay for a company or asset beyond its basic value. This happens when the buyer believes the company is worth more than its current price. Vaishnavi Chauhan takes a closer look at this parameter as applicable to various sectors

time-read
8 minutos  |
May 20, 2024
India's Power Sector Set For A Surge
Dalal Street Investment Journal

India's Power Sector Set For A Surge

As the world's third-largest energy market, India's energy needs are expected to double by 2050, driving explosive growth and potentially transforming the country from an energy importer to an exporter, particularly in renewable energy. This shift offers long-term investment prospects for those looking to capitalise on India's energy boom

time-read
4 minutos  |
May 20, 2024
Q4 Earnings Signals Growth
Dalal Street Investment Journal

Q4 Earnings Signals Growth

As investors eagerly await the outcome of the ongoing Lok Sabha elections, hoping for a decisive political mandate, the equity markets are witnessing heightened volatility, along with optimism driven by quarterly financial results and expectations of a post-election result rally. Mandar Wagh analyses company performances sector-wise to offer deeper insights into the future outlooks of various sectors, considering growth triggers and risk factors.

time-read
10 minutos  |
May 20, 2024
The AI Value Chain
Dalal Street Investment Journal

The AI Value Chain

Artificial intelligence has found its way into stock trading and has helped streamline the processes while also helping investors and traders deal with huge amounts of data. In fact, Traditional AI is now making way for Generative AI to give a further edge to those who need to choose, buy and sell stocks at a much faster rate. Vaishnavi Chauhan takes a deeper look at how AI works as an evolutionary technology

time-read
6 minutos  |
May 20, 2024