Winning Bizness Sports Desk
Mumbai. These days on social media, one can be seen openly calling themselves Investment Advisors and giving advice to investors and nonetheless to say that these tips many times cause investors losing their hard-earned money. The regulator of the stock market is looking very serious about this. SEBI Chairperson Madhabi Puri Buch has said that investment advisors not being registered with SEBI is a cause for concern. She appealed to the Investment Advisors to register them with SEBI adding that SEBI needs lakhs of investment advisors.
Our job is to warn investors
Sebi Chairperson while addressing the RIA conference said that we want to differentiate between fact and fake advisors for which we need 10 lakh registered advisors. Sebi chief said that our job is to warn investors. She said, "It is important for us to tell you that there is a ditch ahead but even after this if someone wants to jump into the ditch then it is his decision." Madhabi Puri Buch emphasized on compulsory corporatization and said that we have seen with our own eyes that an investment advisor is running a business with a call center of 500 people with one registration.
Foundation needs to be strengthened.
We don't know how many people have been forced to commit suicide. If you have such a big business, what is the problem in corporatization? Emphasizing on corporatisation, Sebi chief said compliance increases when there is a board. Having a corporate structure increases the scope of investor protection which is not possible with a single person. SEBI Chairperson was highly appreciative of mutual funds outlining that mutual funds are the best way to invest in the market. It is being run in a better way. Now this is a small industry. But the foundation needs to be strengthened.
