A person engaged solely in education shall mean that such person is not engaged in any of the two prohibited activities. Such person should not be using the market price data of the preceding three months to speak/talk/display the name of any security including using any code name of the security in his/her talk/speech, video, ticker, screen share etc. indicating the future price, advice or recommendation related to security or securities
What do you think?
Could not find anything remotely hinting this in the above mentioned circular.
This circular talks about a specific restriction on regulated entities,
Specifically, restricting them from associating with other folks engaging in 2 activities -
Note the key part being “…without being permitted by the Board to make such a claim”.
Basically,
if you are a regulated entity,
you must not associate with someone (eg. provide a referral to)
who is engaging in providing investment advice, without being licensed to do so.
They can continue to provide investment advice and face the consequences (if any).
This circular has no bearing on that, beyond limiting other regulated entities from associating with such an unlicensed investment advisor.
If one is “posting TA charts” but wishes to claim that they ARE NOT providing investment advice, and hence would like regulated entities to be able to associate with them, then this circular provides clarity on how they can go about doing that -
Do NOT indicate a potential future price of name/codename of a security,
based on market price data of the preceding 3 months.
As long as a person posts TA charts under the above conditions laid out in the above mentioned SEBI circular,
other regulated entities can continue to be associated with such a person,
as the person can claim to be engaged in education.
(As they are NOT providing investment advice, they do not need to be licensed to provide investment advice,)
TA often involves drawing trend lines and support resistance lines - many forecast range, target price and stop loss… Couldn’t this be construed as indicating future price?
Then one easy way to stay clear of unintentionally providing “investment advice” could be
to avoid drawing lines beyond the current time/date.
Alternate approaches could be:
