While investing within the securities market, buyers have been requested to conduct due diligence. (Representative picture)
Capital markets regulator Sebi on Tuesday cautioned buyers in opposition to inserting cash with unregistered entities promising assured or exceptionally excessive returns on investments.
Capital markets regulator Securities and Exchange Board of India on Tuesday cautioned buyers in opposition to inserting cash with unregistered entities promising assured or exceptionally excessive returns on investments. This cautionary assertion got here after the Sebi noticed a rising pattern of unscrupulous entities and on-line platforms that falsely declare to be registered with the regulator as intermediaries.
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Investment Caution
While investing within the securities market, buyers have been requested to conduct due diligence, confirm the registration standing of any entity claiming to be a Sebi-registered middleman, and likewise confirm enforcement motion taken by the regulator in opposition to any entity.
“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 altogether’ holds true in the securities market,” Sebi mentioned in a press release.
It additional mentioned that investments providing excessive returns often contain excessive danger, together with fraud danger, and there might be no ensures of assured returns within the securities market.
These entities typically entice most of the people by showcasing faux certificates purportedly issued by Sebi and promising or implying assured, excessive returns on investments, the regulator famous.
Consequently, Sebi has cautioned buyers in opposition to inserting their cash with any entity primarily based on such claims.
What Investors Need To Know Before Investing Money?
- Verify registration: Only make investments with official and controlled entities.
- Check observe file: Research previous efficiency and funding methods.
- Read the wonderful print: Understand charges, dangers, and potential downsides
Consider consulting a monetary advisor for personalised steerage primarily based in your state of affairs.
Disclaimer: The views and funding ideas by specialists on this News18.com report are their very own and never these of the web site or its administration. Readers are suggested to verify with licensed specialists earlier than making any funding choices.
