Unauthorised trading calls land investment advisors in Sebi's net

The analysis has considered 918 RIAs and 5,330 investor complaints

An analysis commissioned by the Association of Registered Investment Advisers (ARIA) has revealed that nearly 95 per cent of enforcement orders against investment advisors pertain to providing unauthorised trading calls.

The analysis of enforcement orders issued by the Securities and Exchange Board of India (Sebi) in the past decade indicates that of a total of 78 main orders, 74 were against trading call providers, while the rest related to operational issues. Among these 74 cases, 56 orders were issued against unregistered entities, and 18 against registered ones.

Trading call providers offer advice on equity derivatives such as futures and options, intraday equity