Sebi to act against pesky calls to investors

CHENNAI: Markets regulator Sebi on Friday said it will act against pesky calls made by intermediaries to investors promising stock market tips.

Investors across the country are saddled with pesky calls from brokers and intermediaries, more specific from Indore, Madhya Pradesh, promising them bumper profits. The investment/trading tips are then passed on through WhatsApp and text messages. The offers range from a flat commission to a share of profits.

"We are aware of investors getting pesky calls, more particularly from Indore region. We will act against it," said G Mahalingam, a whole-time member of Sebi. He was responding to questions at Chennai International Centre. "Why let your greed dominate your intellect? Will you take advice from any stranger? You must ignore. We will act against these callers. We are aware of this," he said.

He also said that the mutual fund industry must reduce costs for investors. "When the assets under management (AUM) has risen from Rs 3.5 lakh crore to Rs 25 lakh crore, the costs cannot remain the same. The benefits of economies of scale must be shared with investors," he said.

The Indian mutual fund industry operates at 45 per cent profit before tax (PBT) margins. "Nowhere in the world, any other financial services sector will offer these margins. We are thinking of cutting the expense rate for MF," he said.