Mumbai: Markets regulator SEBI has cautioned investors against making investment decisions based on “live trading strategies” or “real-time strategies” promoted on social media platforms.
The regulator said such sessions could involve people providing investment advice without being registered with SEBI.
Live Trading Tips
SEBI said certain individuals on social media are conducting live trading sessions and giving real-time tips on taking positions in the stock market.
These individuals often present themselves as market experts.
They provide detailed views on when investors should enter or exit a trade, what strategy they should follow and what positions they could take on market indices.
Some also claim to trade in real time while displaying the performance of their trades.
They may show market patterns using live data and indicate price targets they expect securities or indices to reach.
Large Online Audience
SEBI said some of these live sessions attract a substantial number of viewers.
Live chats are also enabled during such sessions, where unregistered investment advisory services may be offered.
The regulator has asked investors to be careful about such claims and recommendations.
30-Day Rule
SEBI referred to its May circular governing the use of market price data for investor education and awareness.
Under the rules, market price data can be used for educational and awareness activities only with a lag of 30 days and without monetary incentives to participants.
A person engaged solely in education should not use market price data from the preceding 30 days for any security.
Such persons should also not indicate future prices or provide advice or recommendations related to securities, SEBI said.
The regulator further clarified that live market data cannot be shared except for purposes linked to the orderly functioning of the securities market or meeting regulatory requirements.
Investors Cautioned
SEBI advised investors not to trust people offering live or real-time trading strategies on social media.
It urged investors to take investment advice only from SEBI-registered intermediaries and remain vigilant while carrying out securities market transactions.
SEBI also asked investors to avoid relying on unregistered individuals or entities for investment recommendations.
