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Carry out adequate due diligence before making investments: Sebi chief tells investors

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New Delhi, Markets regulator Sebi’s chief Madhabi Puri Buch on Monday asked investors to be careful and carry out adequate due diligence before making investments.

She also advised investors not to invest on the basis of market rumours and should deal only with Sebi-registered intermediaries.

Further, investors should carry out their financial planning and choose financial products aligned with their financial goals, she added.

“Some of the fundamental principles such as regular saving and investing in a well-diversified portfolio should always be kept in mind,” Buch said in a message on Sebi’s website on the occasion of World Investor Week (WIW).

WIW, organised by the International Organisation of Securities Commissions (IOSCO), is being observed from October 10-16. The theme is Investor Resilience – A smart investor conducts research before investing and diversifies his portfolio.

Over these years, the Indian securities market has transformed in many ways and assisted the economic growth through capital formation. The markets have witnessed growth, in terms of number of daily transactions, number of new demat and trading accounts, increased inflows in products like mutual funds, Buch said.

In this scenario, she said it has become essential to facilitate even greater investor awareness and investor protection.

According to her, investors have been provided with simplified investment processes, transparency through disclosures in the markets and a robust investor grievance redressal mechanism.

Sebi, which is a member of IOSCO, has been participating in the celebrations along with exchanges, depositories, investors associations and commodity derivatives trainers since 2017.

WIW is celebrated globally in October every year in order to give further impetus to the various investor education and awareness initiatives.

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