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Investors should be made aware of risks: Bhave

Last Updated: Tuesday, November 24, 2009 - 23:20

Mumbai: The market watchdog SEBI on Tuesday said
intermediaries who undertake investor education programmes
must make the pitfalls of investment clear.

"When intermediaries take up investor awareness
programmes, there is an inherent conflict in it... (since
)intermediaries take up these projects by spending money, it
is unlikely that they make investors aware about the pitfalls
of investment products," SEBI chairman CB Bhave said here on Tuesday.

Bhave was speaking after launching `The Informed
Investor`, a multi-platform initiative for investor education
by the NSE and CNBCTV18 with support from the SEBI.

On disclosure of mutual funds, Bhave said the risk
involved in these products should be made amply clear. He
further said when institutions like stock exchanges take up
such awareness programmes, "hopefully, they will keep away
from temptation (by disclosing risk aspect)."

While there is a need for a co-ordinated effort from
all market participants, Bhave said SEBI would make its own
effort to educate investors. Investor education must be a
continuous process as new products are being introduced in the
market, he said.


First Published: Tuesday, November 24, 2009 - 23:20

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