PR No.36/2010
Caution to investors
Securities and Exchange Board of India (SEBI) is a regulatory body established by an Act of Parliament to protect the interests of investors in the securities market, to promote the development of, to regulate the securities market and for matters connected therewith or incidental thereto.
The following caution is issued by SEBI in the interest of investors.
SEBI has observed a proliferation of websites that offer investment advice to investors. Many of these websites offer investment advice not backed by any reasonable basis and prima facie appear to be misguiding. Investors should realize that when they follow such advice they are exposing themselves to undue risk in using unconfirmed information available on such Websites/Blogs/astrology predictions or advice/Newspaper Advertisements/SMS’s/Emails/rumours/ advice rendered through television or print media and trading tips on an intra-day basis, short term basis or long term basis. The public in general is advised not to fall prey to or be lured by such sources of information promising quick gains and unrealistic high returns. It is advised that investors should take well informed investment decisions.
The following may be borne in mind:
· Deal only with/ through SEBI registered intermediaries.
· Do not get carried away by advertisements promising unrealistic gains and windfall profits.
· Do not invest based on market rumours or unconfirmed or unauthentic news.
· Be aware that advice through television or print media does not mean that it is the opinion of the channel or publisher.
· Be extra cautious while using information available from media sources such as Websites/ Blogs/ Newspaper Advertisements/ SMS’s Emails/rumours/ advice through television or print media for information and tips for intra-day, short term or long term investing.
· Do not be guided by astrological predictions on share prices and market movements.
· Do not make investment decisions on the basis of implicit/explicit promises made by anyone.
· Do not be unduly influenced by indicative returns.
· Do not be unduly influenced by Bull Runs/Bear Runs while making investment decisions.
Mumbai
February 10, 2010