SEBI - Dealing in unregulated products by SEBI registered Investment Advisers

Last updated: 22 October 2021

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Quick Summary

The Securities and Exchange Board of India (SEBI) has observed that some registered Investment Advisers are involved in unregulated activities. This includes providing platforms for buying, selling, or dealing in products such as digital gold. SEBI has advised all Investment Advisers to cease these unregulated activities immediately. Failure to comply may result in appropriate action under the SEBI Act, 1992.

Securities and Exchange Board of India

Press Release No. 30/2021

It has come to the notice of SEBI that some registered Investment Advisers are engaged in unregulated activity by providing platform for buying/selling/dealing in unregulated products including digital gold.

Undertaking such unregulated activity including dealing (i.e., advisory, distribution and execution/ implementation services) in digital gold by Investment Advisers is not in accordance with the provisions of Section 12(1) of the SEBI Act, 1992 read with the SEBI (Investment Advisers) Regulations, 2013 .

Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities.

Any dealing in unregulated activities by Investment Advisers may entail action as deemed appropriate under the SEBI Act, 1992 and regulations framed thereunder.

Mumbai

October 21, 2021

FAQ :

SEBI is warning registered Investment Advisers about engaging in unregulated activities, specifically dealing in products like digital gold.

No, dealing in unregulated products, including digital gold, is not in accordance with SEBI regulations for Investment Advisers.

Any dealing in unregulated activities by Investment Advisers may lead to action as deemed appropriate under the SEBI Act, 1992 and its regulations.

Unregulated dealing includes advisory, distribution, and execution/implementation services for unregulated products.

Notification No : Press Release No. 30/2021
Source : https://www.sebi.gov.in/media/press-releases/oct-2021/dealing-in-unregulated-products-by-sebi-registered-investment-advisers_53370.html

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