For the last 3 years, especially from 2023, We have witnessed and are still witnessing a raging bull market, and the most common emotion that gets displayed during bull runs is greed, and everyone is either buying or selling greed in abundance.
SEBI’s press release cautioning investors and traders
SEBI released a press release yesterday cautioning people against the rising trend of unscrupulous entities and online platforms that falsely claim to be registered with SEBI as intermediaries.
While talking about these entities, SEBI cautions that these entities often entice the general public by showcasing fake certificates purportedly issued by SEBI and promising or implying assured, high returns on investments.
SEBI cautioned investors against placing their money with any entity based on such claims and are urged to conduct due diligence and verify the registration status of any entity claiming to be a SEBI-registered intermediary. SEBI also said that It is imperative for investors to understand that investments offering high returns usually involve high risk including fraud risk and there can be no guarantees of assured returns in the securities market
SEBI’s advice to everyone
While investing in securities market, investors are advised to:
Verify before investing
Before engaging with any investment service provider, investors are strongly advised to verify the entity’s registration status on the SEBI website (www.sebi.gov.in) by following the below path
→ www.sebi.gov.in → Intermediaries / Market Infrastructure Institutions →Recognised Intermediaries.
Beware of promises of high returns
Investors should be cautious of any entity that promises assured or exceptionally high returns. The principle of 'higher returns come with higher risks of losing your money all-together’ holds true in the securities market.
Verify enforcement action by SEBI
The details of any enforcement action taken by SEBI against any entity/ intermediary is available on SEBI website on the following path → www.sebi.gov.in → Enforcement → Orders.
Be well informed
SEBI encourages investors to empower themselves with knowledge about the securities market for a safer investment journey. Knowledge is your best defense against fraud. For comprehensive resources on understanding the basics of investing, recognizing the importance of dealing with registered intermediaries, and more, please visit SEBI’s investor education website at https://investor.sebi.gov.in.