Mumbai: Markets regulator Sebi Friday proposed to ban 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 automated tools would be responsible for such advice.
Sebi also proposed stricter advertisement rules for investment advisers, a ban on free-trial offers by advisers, and said that registered research analysts would have to simultaneously provide research reports to all types of investors.
On Friday, Sebi issued a consultation paper aimed at overhauling the regulations for investment advisers, and it will accept comments until November 4, it said.
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The markets regulator also proposed that banks, NBFCs, and corporate bodies offering investment advisory services will be required to set up separate arms for that service. Sebi is proposing a three-year transition period for these entities to move investment advisory services to the new setup.