Investors should be made aware of risks: Bhave

The market watchdog Sebi today said intermediaries who undertake investor education programmes must make the pitfalls of investment clear.

"When intermediaries take up investor awareness programmes, there is an inherent conflict in it... (since) intermediaries take up these projects by spending money, it is unlikely that they make investors aware about the pitfalls of investment products," Sebi Chairman CB Bhave said here today.

Bhave was speaking after launching 'The Informed Investor', a multi-platform initiative for investor education by the NSE and CNBCTV18 with support from the Sebi.

On disclosure of mutual funds, Bhave said the risk involved in these products should be made amply clear. He further said when institutions like stock exchanges take up such awareness programmes, "hopefully, they will keep away from temptation (by disclosing risk aspect)."

While there is a need for a co-ordinated effort from all market participants, Bhave said Sebi would make its own effort to educate investors. Investor education must be a continuous process as new products are being introduced in the market, he said.