The stock market regulator, Securities and Exchange Board of India (Sebi), has cautioned investors against getting carried away by advertisements promising unrealistic gains and windfall profits.
In a circular issued on Wednesday, the regulator noted that many of the websites offering investment advice are not backed by any reasonable basis and prima facie appear to be misguiding. Market participants feel that the latest warning by the regulator would help in educating investors to some extend against unscrupulous individuals or entities which try to exploit the ignorance of ordinary investors.
?Investors should realise that when they follow such advice they are exposing themselves to undue risk in using unconfirmed information available on such websites, blogs, astrology predictions or advice, newspaper advertisements, SMS?s, e-mails, rumours and advice rendered through television or print media and trading tips on an intra-day basis, short term basis or long term basis. The public in general is advised not to fall prey to or be lured by such sources of information promising quick gains and unrealistic high returns,? the Sebi note said.
The regulator has also advised investors to deal only with or through Sebi registered intermediaries and cautioned them to be extra careful while using information available from various media sources. ?Be aware that advice through television or print media does not mean that it is the opinion of the channel or publisher,? Sebi said. Investors were further advised not to be unduly influenced by bull-run or bear-runs while making investment decision.
