SEBI Advisory: Market regulator SEBI has asked investors to be cautious of such unregistered companies which claim assured and high returns. SEBI warned that the number of such fake companies and online platforms is increasing rapidly. Investors will have to stay away from these. They also claim to be registered with SEBI.
Do research before investing in securities market
SEBI has asked investors to do their own research before investing in the securities market. Also check the company claiming to be registered with SEBI. This verification can be done from SEBI website. Apart from this, investigation about the companies can also be done by contacting SEBI. Also, investors should check what action SEBI has taken against such a company.
High risk of losing money with high returns
SEBI said in its advisory that with high returns comes high risk of losing money. Companies making such claims often waste people's money. Besides, these companies have also been found involved in fraud with the people. According to SEBI, fixed returns cannot be guaranteed in the security market.
Fake companies and online platforms are making claims
SEBI has found that such fake companies and online platforms deceive people by showing fake certificates of SEBI. Once they win the trust, these people tell investors the plans for high and assured returns. Such schemes often turn out to be fake. Therefore, SEBI has advised not to invest your money on any such claim.
Invest money only with companies registered with SEBI
SEBI has asked investors to be careful while taking investment decisions. Invest your money wisely. After investigation, invest money only with companies registered with SEBI. They should not fall prey to fake claims of assured and high returns. By following these guidelines, investors can avoid financial loss and fraud.
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