The Securities and Exchange Board of India (SEBI) on Tuesday cautioned small investors against going in for quick gains through speculation, terming such action as very risky.
According toa report, SEBI Chairman U K Sinha was quoted, as saying that technical expertise was needed to make additional amounts of money through the medium of share markets.
He said SEBI has regulatory mechanisms withing its ambit to curtail illegal commodities by scamsters and manipulators.
Since 2000, derivatives in stocks have been present in India and SEBI has been regulating it and the stock exchanges have been providing this trading. The currency derivatives are also being regulated by SEBI.
SEBI, Sinha said, will put in place a new set of regulations to ensure safety of the small investor.
Sinha also said that SEBI would take punitive action against anyone committing serious financial offences, and added that no settlement plea would be entertained.
SEBI, he said, was for good corporate governance by over 5,000 listed companies.
