An action under the provisions of the Indian Penal Code (IPC) will be taken against entities including firms, websites and individuals that provide investment advice without registration in Securities and Exchange Board of India (SEBI). This decision was taken at a meeting of the state level coordination committee held under the chairmanship of the principal secretary finance Anurag Jain at Mantralya.
Officials of the reserve bank of india, SEBI, cooperative, institutional finance, home department and Police participated in the meeting. A list comprising of 75 unregistered firms which are operating in the state has been handed over by the SEBI. It may be mentioned that as per the SEBI Regulation-2013, it is mandatory for the investment consultancy service providers to get themselves registered in SEBI.
These kinds of unregistered institutions/individual lure investors through phone calls/SMS for fixed profit. This kind of activity comes under the category of fraud according to the IPC. It is further highlighted that action was taken by the special task force on 7 firms in Indore in the past too.
