Mumbai , July 22: NOW, persons making stock recommendations in the media have to disclose their holdings on the scrips being recommended. The Securities and Exchange Board of India has advised that media companies have to ensure that persons making investment advices disclose their holdings as well as that of their dependent family members and their employer in the particular company about which advice is being made.
SEBI has noticed that many persons are making recommendations in the media advising investors regarding the desirability of investment in particular stocks.
A SEBI note of advice said, "Some of these investment advisors are SEBI registered intermediaries or employees thereof, while others are non-intermediaries. There is an apprehension that some of the advices provided by such investment advisors may be either false or misleading."
The likelihood that such advices are given by investment advisors with a view to benefit from the actions of the investors, who may be persuaded by these advices cannot be ruled out, SEBI said. The requirement of making these disclosures falls under SEBI's Investment Advice by Intermediaries Regulation.
