SEBI registration is compulsory for any investment adviser in market. That days are gone when people were doing and sending tips over SMS and other mediums. SEBI has come up with Investment Adviser Act in 2013 and it’s compulsory to have SEBI licence to provide any kind of advice or tips in stock market or commodity market. So every company or tips provider have to take SEBI registration by following their procedures. Clients also search for SEBI registered investment advisers only.
SEBI is giving registration to many categories like Investment advisers, Research analysts, Portfolio Managers, Merchant bankers, Credit rating agencies, KYC registration agencies and Stock brokers for different segments like equity, commodity and currency. Those who are providing tips or general advice in stock market or commodity market are falls under Investment Adviser ACT and they have to comply with the same.
Is it compulsory to have SEBI registration?
Yes as per SEBI Investment adviser Act of 2013, It’s compulsory to comply with SEBI registration to provide any kind of investment or trading advice in stock market or commodity market. Those who are not registered as SEBI registered stock advisory company or individual SEBI registered investment advisor, SEBI is taking strict action against them. Clients are also advised to check SEBI registration number before joining any company. Don’t follow social media like facebook, whatsapp or telegram unregistered tips provider because SEBI will not help if you are getting losses or being cheated by them. SEBI always takes necessary action against fraud tips providers and those who are not registered as investment advisor.
Why should you choose SEBI registered stock advisory company?
After so many frauds complaints and forgery activities happening in stock market, SEBI introduced Investment adviser and Research Analyst ACT in 2013 in which those who are giving recommendations in securities markets are required to take registration so that they can find out fraud companies who just give fake promises and take huge fees but giving nothing in return. They also made KYC documentation mandatory of all clients along with Risk assessment of each client so that if clients are not having risk taking capacity, company can’t provide them services in daily trading or F&O trading. So if SEBI has made registration of Investment advisory and research analyst compulsory, it’s in interest of clients who were being cheated by fraud companies. You should always perefer SEBI registered stock advisory company only for safety of your capital.