New Delhi: Cautioning investors against exorbitant or assured returns, Sebi Thursday asked public to deal with only registered investment advisors and pay advisory fees through banking channels only.

The move comes in the wake of several instances wherein investors got lured by false trading tips.

The regulator has asked investors to ensure that the investment advisor has a valid registration certificate, Securities and Exchange Board of India (Sebi) said while issuing do’s and don’ts list for public while dealing with investment advisor.

Also, it asked people to assess the risk-return profile of the investment as well as the liquidity and safety aspects before making investments.

“Pay only advisory fees to your investment advisor. Make payments of advisory fees through banking channels only and maintain duly signed receipts mentioning the details of your payments," the regulator noted.

Besides, it has asked investors not to fall for the promise of exorbitant or assured returns by the investment advisors and “do not let greed overcome rational investment decisions and do not get carried away by luring advertisements or market rumours".

Also, it asked public to avoid doing transactions only on the basis of phone calls or messages from any investment advisor or its representatives.

The regulator has asked not to deal with unregistered entities and do not fall for stock tips offered under the pretext of investment advice.

“Be vigilant in your transactions. Insist on getting the terms and conditions in writing duly signed and stamped. Read these terms and conditions carefully particularly regarding advisory fees, advisory plans, category of recommendations etc before dealing with any investment advisor," Sebi noted.

The regulator has asked investors to approach the appropriate authorities for redressal of grievances and also inform it about any investment advisors offering assured or guaranteed returns.

This story has been published from a wire agency feed without modifications to the text.

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