Mumbai: Markets regulator Sebi on Friday proposed banning unauthorized stock tips through SMSs, WhatsApp, Facebook, Twitter, and other social media platforms. It is also mulling a ban on games and competitions based on trading in the market. Sebi also proposed stricter regulations on ‘Robo’ advisers—automated investment advisers gaining popularity globally. The regulator also said investment advisers using computerized tools would be responsible for such advice.
Sebi also proposed stricter advertisement rules for investment advisers, a ban on adviser free-trial offers, and the requirement that registered research analysts provide research reports to all investors simultaneously.
On Friday, Sebi issued a consultation paper aimed at overhauling the regulations for investment advisers, and it said it would accept comments until November 4.
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The market regulator also proposed that banks, NBFCs, and corporate bodies offering investment advisory services would be required to set up separate arms for that service. Sebi proposes a three-year transition period for these entities to move investment advisory services to the new setup.
