Research analyst and investment advisor regulation violation

Good evening sir
Sir me and my friends discuss before taking trades, the discussions are always mutual we decide amongst ourselves and take trades from our own personal trading accounts … So is it by any chance a violation that we are recommending stocks to each other?

And can we disclose it in public that we guys trade as a team or will it be a violation in case SEBI knows

Kindly reply sir

I don’t think it is an issue. The issue starts if you start charging a fee for your advice.

Thank you so much for the reply Sir

can ria execute trades in clients account if client himself urges him to do . Will signed poa from client would be legitimate for this purpose or any other thing needed.

I don’t think that’s the case what if an advisory does the same to the other clients if that’s not an issue then this too won’t be an issue
Because we won’t be recommending others to push the price even further so that we can sell at higher prices
And what if we did the same as a partnership or company then that’s not the issue so why an issue when doing individually

So are you telling me that it is illegal to discuss and take trades?

I think the main manipulators are the media and the advisories

And will it be an issue if we are not involved in insider trade or tax evasion etc.

I think this is not an offense unless and untill it’s not inside trading that is using some inside news and applying pump and dump strategy like Harshad Mehta…

And price is mainly move by big players, Fiis, Diis, not by retailers…

This is my view… Always happy to see corrections :pray::pray::pray:

True man unless until you are telling the outside public to buy to push the prices higher so that you can sell at higher prices

And who in the world won’t discuss with friends/family before taking any trading/investing/financial decision

If this is were to be an offence then the regulators are promoting the businesses of the registered IAs and RAs as if they are the only people to whom we can talk freely about securities

And if it’s legal for the FII and DII to move the prices why can’t the retail do it then

If you think you have required capital, you are more then welcome to move the markets, nobody is stopping you. What you can’t do is pump and dump scheme.

How exactly do you define pump and dump

I mean if I buy a share and my friend also buys it seeing me is it a type of pump and dump?

According to best of knowledge it’s not. But if it is you who might be on the other side(sell side)then it might be.

Didn’t get it
You mean if I sell after telling others to buy?

Yes that will be classic example of it, that is you aquire stock from market then pursuade others to buy /spread rumors and tips so that others start buying the stock and then book profit.
But there are various provisions to this and differs case by case therefore I used word ‘might’ in my previous answer.

Let’s say a person after buying a stock recommends to a friend about it but then squares off the position before his friend but he informs his friend about the closed position will that be a pump and dump on a small scale?

Like I mentioned depends on case to case basis and intentions involved .