Securities And Exchange Board of India
Do’s and Don’ts while dealing with Investment Advisers
Do’s
1. Always deal with SEBI registered Investment Advisers.
2. Check for SEBI registration number. Please refer to the list of all SEBI registered Investment Advisers which is available on SEBI website in the following link: https://www.sebi.gov.in/otherentry/nov-2018/do-s-and-don-ts-while-dealing-with-investment-advisers_41124.html
3. Ensure that the Investment Adviser has a valid registration certificate.
4. Pay only advisory fees to your Investment Adviser. Make payments of advisory fees through banking channels only and maintain duly signed receipts mentioning the details of your payments.
5. Always ask for your risk profiling before accepting investment advice. Insist that Investment Adviser provides advisory strictly on the basis of your risk profiling and take into account available investment alternatives.
6. Ask all relevant questions and clear your doubts with your Investment Adviser before acting on advice.
7. Assess the risk–return profile of the investment as well as the liquidity and safety aspects before making investments.
8. Insist on getting the terms and conditions in writing duly signed and stamped. Read these terms and conditions carefully particularly regarding advisory fees, advisory plans, category of recommendations etc. before dealing with any Investment Adviser.
9. Be vigilant in your transactions.
10. Approach the appropriate authorities for redressal of your doubts / grievances. Inform SEBI about Investment Advisers offering assured or guaranteed returns.
Don’ts
11. Do not deal with unregistered entities.
12. Don’t fall for stock tips offered under the pretext of investment advice.
13. Do not give your money for investment to the Investment Adviser.
14. Don’t fall for the promise of indicative or exorbitant or assured returns by the Investment Advisers. Don’t let greed overcome rational investment decisions.
15. Don’t get carried away by luring advertisements or market rumours.
16. Avoid doing transactions only on the basis of phone calls or messages from any Investment Adviser or its representatives.
17. Don’t take decisions just because of repeated messages and calls by Investment Advisers.
18. Do not fall prey to limited period discount or other incentive, gifts, etc. offered by Investment Advisers.
19. Don’t rush into making investments that do not match your risk taking appetite and investment goals
