Power to the People

Around 1,500 Reliance Infrastructure consumers switch to Tata Power

On 15 October 2009, the...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Alternative Investment: Alternative Investment

Osian Art Fund fetched poor returns for investors and bad publicity for Osian and drove a hard...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
SEBI wants neutral bodies to educate investors, curb mis-selling

The market regulator has stressed the need for matching the risk profile of the investor and the risk associated with the product while selling a financial instrument

In order to avoid mis-selling of investment products, market regulator Securities and Exchange Board of India's (SEBI) chairman C B Bhave highlighted the greater need for neutral agencies to educate investors, reports PTI.

"Neutral agencies like the media, regulators and other self-regulated bodies add more value...they make an effort to let investors see both the sides," Mr Bhave said while speaking at a seminar on investor education.

Intermediaries having an interest in the products do educate the people, Mr Bhave said, but they can tend to overlook the flip side. He cited the example of derivative products where investors were told how much money they could make if the stock price rises, but were not told about what happens when the stock falls and how their losses increase.

Mr Bhave also stressed the need for matching the risk profile of the investor and the risk coming with the product while selling, and said, "different classes of investors need different kinds of education...a retired person's risk profile is different from that of a student."

The SEBI chief also asked the agencies to target one such group of investors at a time when it comes to education and avoid having generic programmes.

"Emphasis must also be given to educating the investor in the language he understands, and hence, it would be beneficial if regional languages are also used," he said.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)