The Securities and Exchange Board of India (SEBI) on October 21 announced that investment advisors are barred from advising on unregulated instruments.
Read: NSE bans members from selling digital gold after Sebi flags concerns
This effectively bans the investment advisors from advising on cryptocurrencies, digital gold and other unregulated products.
"It has come to the notice of SEBI that some registered investment advisers are engaged in unregulated activity by providing platform for buying/ selling/ dealing in unregulated products including digital gold," the market regulator said.
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Offering advisory, distribution, execution or implementation services in unregulated instruments is not in accordance of with the provisions of Section 12(1) of the SEBI Act, 1992, it added.
"Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities," SEBI noted, further stating that any dealing in unregulated activities may lead to action under the SEBI Act, 1992.
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