Sharing Stock tips - SEBI Law Experts
2 years ago
What if a person is sharing his opinion on various stock everyday (Stock name, current price, target price, stop loss, time horizon) on any social media platform and this is visible to his other friends who are interested in stock market as well. Is it legal? If no then who can fall in trouble, the person or social media platform? No fee is involved
Scenario 1 - The person is SEBI registered
Scenario 2 - The person is just a normal investor belonging to a different field.
Ankur Goel @ Complete Law Shield
Responded 2 years ago
A.you are not holding gun on their head to accept your tips.
If you tell a person to jump to well then they will not jump.
But if any idiot still jumps then you will face music.
So your words have meaning. You can use like guarantee, 100% etc
If you tell a person to jump to well then they will not jump.
But if any idiot still jumps then you will face music.
So your words have meaning. You can use like guarantee, 100% etc
Helpful
Helpful
Share
A.Hi,
If you are sharing tips on social media about stock trading free of cost for no monetary consideration, then you wont be held liable. The viewers and your followers needs to apply discretion while investing as per your advice. You will have zero liability.
If you like my answer, please rate me.
If you are sharing tips on social media about stock trading free of cost for no monetary consideration, then you wont be held liable. The viewers and your followers needs to apply discretion while investing as per your advice. You will have zero liability.
If you like my answer, please rate me.
Helpful
Helpful
Share
Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Sharing your thoughts and knowledge on social media would not warrant any liability. People investing on stock market should be cautious. You cannot be blamed for their losses. Your not advising them for any personal gain or economic transaction.
If you like my answer, please rate me.
Sharing your thoughts and knowledge on social media would not warrant any liability. People investing on stock market should be cautious. You cannot be blamed for their losses. Your not advising them for any personal gain or economic transaction.
If you like my answer, please rate me.
Helpful
Helpful
Share
A.Dear Sir,
You are not registered person as expert. Nobody will be held responsible.
You are not registered person as expert. Nobody will be held responsible.
Helpful
Helpful
Share
A.Sharing his opinion for general public will without any commercial intonation will not put him in any trouble in my opinion as he is not advising to anyone but just putting his observation onto the social media. If someone acts on that basis then he will (should) not be responsible unless he is personally being approached upon and asked for advice on a professional basis.
Now as per SEBI guidelines is he allowed to disclose those information publicly or not he has to ascertain. Hi might be allowed to share with his client but may not be allowed to share publicly do he he just need to check th SEBI rule book.
Now as per SEBI guidelines is he allowed to disclose those information publicly or not he has to ascertain. Hi might be allowed to share with his client but may not be allowed to share publicly do he he just need to check th SEBI rule book.
Helpful
Helpful
Share
Read Related Answers
Nach charges
Dear Client,
You can connect with the bank to know the reason for deduction of NACH charges and solve the matter amicably. But, in case of inaction or unreasonable deductions by the bank, you can file...
Recovery of my fund against Fraud via share market in whatsup group
Dear Client,
send a legal notice to them through an advocate for offence of cheating under sec 416, 420 of IPC. make sure o=to have all evidences in form of proof like receipts, bills etc additionall...
Financial scam related to escort service
Dear Client,
In the given situation, you can file a complaint against the escort agency for deficiency in service and unfair trade practices before the Dist. Consumer Commission under Sec.35 of the C...
loan issue
Dear Client,
In the given scenario, file a police complaint against the malpractice of the lending App. You can also make a complaint to the Cyber Crime Cell online at https://www.cybercrime.gov.in/...
Receive Cash through wire transfer
Dear Client,
Forex and currency trading in India is legal but failure to adhere to authorised brokers or permitted currency pairs is a penal offence under FEMA. If you are interested in online forex t...
Read Blogs on Financial Markets and Services
Financial Markets and Services Lawyers
Find Lawyers by Location
