The Securities and Exchanges Board of India (SEBI), is cracking down on what it claims are "entities Engaged in unregistered Investment advisory and portfolio management activities" through SMS (or text messaging). SEBI has said that it has noticed that certain entities were offering intraday tips and stock advisory services to investors through Short Message Services (SMSs) via mobile phones. During the investigation, it obtained details of call data records (CDR's) of numbers used for this messaging, and visited Imtiyaz Hanif Khanda. According to SEBI, it was observed that, via businesses called Right Trade, Sai Traders, Bull Trader and Laxmi Traders, were providing investment advice without being registered with SEBI. Apparently, Right Trade, via its website www.righttrade.in had solicited business of portfolio management services from the general public without being registered as a portfolio manager with SEBI. It had also advertised via SMS, inviting clients to enroll for advisory services, and the website RightTrade.in had published information that it had offices in several countries, despite only having an office in Surat. "The entities had also made misrepresentations by making unrealistic claims, false statements such as having office in various countries, FII based calls, jackpot calls, etc., and they also made representation in reckless and careless manner in their messages and website suggesting facts which are not true. By their acts and omissions they have prima-facie solicited, enticed and induced investors to deal in securities on the basis of their investment advices, stock trade tips, etc," SEBI said in its report. The…
