Stock Market is very popular among other types of assets due to its volatility, Liquidity, and Returns. Nowadays new people and students come to stock market with small capital and try to compound it.
After corona crash many traders and investors enter into financial market. They have less than 10K capital and trade in equity and derivatives and lose money.
Many newcomers fall into trap of tips, recommendations, fake courses, portfolio management services, etc. They don’t understand who is right or wrong.
There are many finance influencers who use disclaimer before sharing any tips or recommendation on companies they are genuine. Its your responsibility to take action on that.
My friend who’s name is ganesh also lost money to unregistered financial advisor in 2020. There are many examples, we share you right direction in this article.
Stock Market Course Selling Without License ?
Yes, anyone can sell stock market courses not only stock market but also financial market courses without license. Those who passed 12th std or graduation can sell courses on individual level. But for business you need license.
Selling course is not bad when you shares knowledge about stocks, mutual funds, etc SEBI also give permission you to literate people in finance.
But those who sell dreams not knowledge are bad and SEBI will take strict actions in terms of money wise against those persons. If you show Past Returns, Screenshots, Guarenteed Profits, Show Money, etc then anyone will complaint against you and SEBI will pass orders on you.
Always learn from peoples, who have practical experience in that field. We recommend you to take stock market courses from CA, MBA, CFA, Economics, Finance background peoples, because they already have practical knowledge in that field they don’t give you stocks recommendations rather they give valuation, business cycles, cash flow methods, technical knowledge.
Who Have Rights to Give Stock Tips and Investment Advise ?
In India, only individuals or entities registered with the Securities and Exchange Board of India (SEBI) are authorized to provide investment advice.
For stock tips and investment advise you need to take SEBI license Like Research Analyst , Financial Advisor, Investment Advisor, Portfolio Management Services etc. If you get caught giving tips on any stocks without license then SEBI fined you.
Those who run telegram channel for tips, whatsaap group for options tips and recommendations with license have rights to provide it. By law, only SEBI-registered professionals can provide investment advice.
Research Analyst, is a person who have detail knowledge in fundamentals of company, valuation methods like DCF, PE, etc. He can share stocks based on research.
Financial Advisor, have details knowledge in financial assets like gold, mutual funds, SGB, Debt instruments, Index Funds, Real Estate, Cash Market, etc. He can personally advise you on stocks.
Investment Advisor, manage your investment capital he have rights to buy and sell your stocks and charge you fee not more than 2.5% of your capital.
Portfolio Management Services, is a company or individual who manages High Net Worth peoples money.
