Investors need to be aware of the lure of unrealistic returns in the market


MUMBAI: Ajay Tyagi, chairman of the Securities and Exchange Board of India (SEBI), has said that investors should not be tempted by the lure of unrealistic returns and very good returns when investing in the securities market.

Addressing the India International Trade Fair, SEBI Chairman Ajay Tyagi said that investors need to be vigilant against the temptation of unrealistic returns in the securities market. He also said that SEBI was bringing in an investor charter to protect the interests of investors in the Indian securities market.

Valuations in the stock market have already reached new heights and companies are lining up IPOs to raise funds from investors. The SEBI chairman said that often the lucrative elements are trying to lure naive investors by guaranteeing unrealistic returns. So my advice to investors is to be wary of such temptations.

"Investors should first understand that there are risks involved with any financial investment," he said. So investors should be aware of the risks involved in investing in those investment instruments. So if you are not comfortable with a particular financial product then you should refrain from investing in it.

In addition to SEBI's investor charters, separate investor charters have been developed by registered intermediaries, regulated entities and asset management companies. These investor charters have been brought with the objective of creating awareness among the investors.

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