look news india
An analysis showed that the proportion of trading-related complaints against investment advisers registered with the regulator is a whopping 73 per cent.
While 72 per cent of regulatory orders passed by the Securities Exchange Board of India are against registered investment advisors. Further, when it comes to registered and unregistered companies, the highest number of orders are against unregistered entities, which is 71 per cent. Also, the proportion of orders passed against registered entities is 29 per cent. This study gives an idea of the risk involved in providing trading call services and engaging in stock market trading. The observation also revealed that there is a need to keep a watchful eye on unregistered financial advisors. Separate action also needs to be taken against registered investment advisors (RIAs) who do not provide trading calls.
Securities Exchange Board of India (SEBI) orders and other complaints against financial advisors were looked at by the Association of Registered Investment Advisors (ARIA). Most of the complaints were against financial advisors. SEBI has received complaints against both registered and unregistered advisors. As of June 30, 2024, SEBI's SCORES website analyzed complaints received against RIAs since their inception. The study also revealed that most of the SEBI orders i.e. 71 percent of the orders were passed against unregistered financial advisors.
Of the total complaints filed against registered investment advisors, 73 per cent of the complaints are against trading call providers. 34 out of 44 or 77 per cent of SEBI's orders in the RIA group are against companies providing trading calls. The analysis takes into account orders passed from the inception of the institutions to March 31, 2024. Out of 44 orders against this group, 33 or 72 per cent orders are related to derivative services. Also, the proportion of equity-related orders is 39 per cent. While the volume of complaints related to intra-day-equity or high-frequency trading is 23 per cent.
Moreover, 104 out of 107, or 97 per cent, of SEBI’s enforcement orders were passed against unregistered investment advisers who offer trading call services. The enforcement orders are primarily against trading call providers, whether registered or unregistered.
