Pandey asserted that there is no ‘regulatory vacuum’ regarding education rules and added that there may be a ‘lack of understanding’ in this aspect.”Our regulations clearly say that you cannot give stock tip advice,” he told reporters on the sidelines of an event at the largest stock exchange, NSE, here.
He, however, admitted that there was “inconsistency” in two Sebi circulars on the use of live data for educational purposes and added that Sebi will discuss the issue soon.
“It is true that there has been an inconsistency in two of our circulars dealing with live data. We will find out its consistency. Only past market data will be used for educational purposes; current data should not be used,” Pandey said.
Sebi had imposed a heavy penalty on Sathe and asked for the return of over Rs 546 crore in profits. Citing findings from a recent survey by regulators, he lamented that 62 percent of respondents said they made investment decisions based on recommendations from finfluencers.
Speaking at the launch of the Past Risk and Return Verification Agency (PaRRVA), Pandey said influencers often lure investors with exaggerated or fabricated returns and unscrupulous intermediaries further fuel investor uncertainty with exaggerated claims.
Just over a third of investors said they had sufficient knowledge of the securities market, leaving a large group vulnerable to unverified claims, he said.
There is a need for credible performance data to manage expectations and promote ‘responsible investing’, he added.
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