SEBI Warned Registered Advisers Against Dealing with Unregulated Assets

The Securities and Exchange Board of India (SEBI), the Indian securities market regulator, has issued a notice stating that some registered Investment Advisers are conducting the unregulated activity by providing platform for buying/selling/dealing in unregulated products including digital gold and warned them to refrain from undertaking such unregulated activities.

“Undertaking such unregulated activity including dealing (i.e., advisory, distribution and execution/ implementation services) in digital gold by Investment Advisers is not in accordance with the provisions of Section 12(1) of the SEBI Act, 1992 read with the SEBI (Investment Advisers) Regulations, 2013,”SEBI noted.

Many people believe it is a warning against the country's increasing cryptocurrency investments, though the market watchdog only mentioned digital gold in its notice. India is a significant currency market. According to many reports, the country has the greatest absolute number of crypto investors. However, just as any other major country, India does not regulate digital currencies.The government and other authorities in the country remain opposed to cryptocurrency, despite the fact that the country's highest court overturned a ban on banks working with crypto businesses. 

“Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities,”the agency added. “Any dealing in unregulated activities by Investment Advisers may entail action as deemed appropriate under the SEBI Act, 1992 and regulations framed thereunder.”

Fazzaco has learned that the Indian regulator issued the latest warning after the CEO of a popular home-grown crypto exchange said that the government and regulators are working together to introduce regulations for the crypto industry. However, there is still a long way to go for the Indian government to issue the related legislation on banning cryptocurrency investments.