SEBI bans investment advisors from advising on unregulated instruments, including digital gold and crypto
This effectively prohibits investment advisors from giving advice on cryptocurrencies, digital gold and other unregulated products.
The Securities and Exchange Commission of India (SEBI) announced on October 21 that investment advisors are prohibited from making recommendations to unregulated instruments.
This effectively prohibits investment advisors from making recommendations on cryptocurrencies, digital gold and other unregulated products.
According to the market regulator, SEBI noticed that some registered investment advisors are engaged in unauthorized activities using the platform to buy/sell/trade unregulated products, including digital gold.
According to him, the provision of consulting, distribution, application or application services to unregulated vehicles does not comply with the provisions of article 12 (1) of the SEBI Act of 1992.
SEBI strongly recommended that investment consultants exclude such services from their activities, and also, all transactions with unregulated activities must be made in accordance with the SEBI Law of 1992.