Market regulator the Securities and Exchange Board of India (Sebi) today advised investors to perform due diligence before putting money in the stock market solely on the advice received through print media or bulk SMSes.
The advisory comes following Sebi receiving complaints against persons who have been giving stock-specific advice to investors and receiving consideration for the same.
"Investors are therefore advised to take adequate care and carry out necessary due diligence before acting on the basis of such advice or communication," Sebi said in a statement.
It has also come to the notice of Sebi that some persons are giving investment advice through the print media or by sending bulk SMS messages even without entering into any contract or arrangement or without any consideration, the statement said.
The code of conduct provides that an intermediary can give investment advice through media for a particular share only if he discloses his own interests in the security.
The regulator said any unauthorised advice "might be an attempt to influence market price and lure investors".
