In Brief:
- SEBI warned advisors from providing advice on unregulated products.
- Upon violation of the rule, advisors to face legal action under the SEBI Act.
The Securities and Exchange Board of India (SEBI), India’s top securities regulator, issued a notice advising investors not to deal in unregulated assets like crypto in the country.
It also stated that providing advisory, distribution, execution, or implementation services in unregulated instruments violates the provisions of Section 12(1) of the SEBI Act of 1992.
As a result, investment advisers are advised to refrain from engaging in such unregulated activities.
The market regulator stated that “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” while addressing the report.
Also Read: Survey on Cryptocurrency Adoption in India
The report comes with no surprise with the enormous increase in Indians trading products such as Bitcoins and other cryptocurrencies, NFTs, and digital gold.
