Odisha News Hour

Promised Returns? SEBI Issues A Warning Regarding Unbelievable Claims, Asks You To Verify Details

<p>The Securities and Exchange Board of India, a capital markets regulator, issued a warning to investors on Tuesday against investing money with unregistered firms that offer guaranteed or extraordinarily high returns. The Sebi issued this warning after seeing an increase in dishonest businesses and internet portals making bogus claims to be registered as middlemen with the regulator.</p>
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<p><strong>Exercise Caution When Investing</strong></p>
<p>It is required of investors to do due diligence when making investments in the securities market, to confirm the registration status of any business claiming to be a Sebi-registered intermediary and to confirm any enforcement actions taken by the regulator against any entity.</p>
<p>“Any organization that offers guaranteed or extraordinarily high profits should raise red flags for investors. In the securities market, the adage “higher returns come with higher risks of losing your money altogether” is valid, according to a statement from Sebi.</p>
<p>It went on to say that there are no assurances of guaranteed returns in the securities market and that investments with high returns often have a significant risk, including the potential of fraud.</p>
<p>According to the regulator, these organizations often use phony certificates that seem to have been issued by Sebi to attract the public, alluding to guaranteed high returns on investments.</p>
<p>As a result, investors have been advised by Sebi not to entrust their money to any organization that makes such promises.</p>
<p><strong>What Information Should Investors Get Before Making a Purchase?</strong></p>
<p><strong>Check your registration:</strong> Invest only in reputable and regulated companies.<br />
<strong>Examine your history:</strong> Examine prior results and investing approaches.<br />
<strong>Examine the fine print:</strong> Recognize costs, dangers, and possible drawbacks.</p>
<p>Seek the advice of a financial expert for customized advice tailored to your circumstances.</p>