SEBI | unregulated instruments SEBI stops investment consultants from advising on unregulated instruments like crypto and digital gold
Mumbai/IBNS: The Securities and Exchange Board of India (SEBI) on Thursday prohibited investment advisors from advising on unregulated instruments, according to media reports.
This effectively stops the investment advisors from advising their clients for investing in cryptocurrencies, digital gold, and other unregulated products.
"It has come to the notice of SEBI that some registered investment advisers are engaged in unregulated activity by providing a platform for buying/ selling/ dealing in unregulated products including digital gold," the market regulator said.
Offering advisory, distribution, execution or implementation services in unregulated instruments is not in accordance of with the provisions of Section 12(1) of the SEBI Act, 1992, it added.
"Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities," SEBI noted, further stating that any dealing in unregulated activities may lead to action under the SEBI Act, 1992.
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