Indian Regulator Bans Advisors from Dealing with Unregulated Assets

Indian securities market regulator, the Securities and Exchange Board of India (SEBI), issued a notice on Thursday warning the regulated investment advisors to refrain from dealing with unregulated assets.

Though the market watchdog only mentioned digital gold in the notice, many are anticipating it to be a warning against booming cryptocurrency investments in the country.

“It has come to the notice of SEBI that some registered Investment Advisers are engaged in unregulated activity by providing platforms for buying/ selling/ dealing in unregulated products including digital gold,” SEBI noted.

“Undertaking such unregulated activity including dealing (i.e., advisory, distribution and Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term/ 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.”

Murkey Grounds on Crypto

India is a major market for currencies. Many reports even put the country with the highest absolute number of crypto investors. However, digital currencies are not regulated in India, like any other major country.

Though the apex court of the country quashed a ban for banks to work with crypto companies, the government and other authorities in the country are still hostile against Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. A draft bill banning cryptocurrencies at a legislative level was expected to be tabled in the last few parliamentary sessions, but that bill was never introduced.

The latest warning by the Indian regulator came 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.

“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.”