On October 21, the Securities and Exchange Board of India declared that investment advisors are banned from advising on unregulated instruments.
This practically prohibits the investment advisors from suggesting on digital gold, crypto and other unregulated products.
The market regulator said that it has come to the notice of SEBI that some registered investment advisors are occupied in the unregulated task by offering platforms by selling/buying/ dealing in unregulated products including digital gold.
It added that providing distribution, advisory, execution or implementation services in unregulated instruments is not in accordance with the provisions of Section 12(1) of the SEBI Act, 1992.
SEBI noted that investment advisors are, hereby, suggested to cease from undertaking such unregulated activities. It further stated that any transaction in unregulated activities may result to action under the SECI Act, 1992.