Can we post on stock ideas when we are not sebi registered?

Can we post on stock ideas when we are not sebi registered?

You can post ideas for discussion or academic sake but not to give recommendation.

Relevant portions of Article 19 of Constitution of India,

  1. Protection of certain rights regarding freedom of speech etc

(1) All citizens shall have the right
(a) to freedom of speech and expression;
(b) to assemble peaceably and without arms;
© to form associations or unions;
(d) to move freely throughout the territory of India;
(e) to reside and settle in any part of the territory of India; and
(f) omitted
(g) to practise any profession, or to carry on any occupation, trade or business

(2) Nothing in sub clause (a) of clause ( 1 ) shall affect the operation of any existing law, or prevent the State from making any law, in so far as such law imposes reasonable restrictions on the exercise of the right conferred by the said sub clause in the interests of

- the sovereignty and integrity of India,
- the security of the State,
- friendly relations with foreign States,
- public order,
- decency or morality or 
- in relation to contempt of court, defamation or incitement to an offence

I would like to believe this is our fundamental right. I can speak and express my opinion about any company.

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As per article 19, you also have the right to practice any profession you want.
You can also practice medicine if you want as per this article.
But as per law, you need medical degree. You can’t practice without the medical degree recongised by medical council of India!

Also, as per law you can’t give even free medical advise if you are not registered with medical council of India, if you give free medical advise , and any adverse happens to patient and if he or she files a complaint, you are completely legally liable as you are not a registered practiciner,
You may apply same analogy to investment advise

Hi @Vijayk

I said [quote=‚ÄúGaurav_Agarwal, post:3, topic:6666‚ÄĚ]
speak and express my opinion about any company.

I never said recommend a company. Similarly you are free to speak about any drug. Are we not speaking about Crestor now a days?

As far as everyone can see, most of top VAluepickrs have stopped discussing individual companies. Only general gyaan etc, the quality and openness 3 years back was very different.
It is quite clear they discuss these cos in a pvt Grp and not here on VP anymore!

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Who are the top Vpickers Vijay? Will be helpful to track them as I a me new to the forum, relative;y.thanks/

The thing is, nobody wants to go to court. This piece of rule by SEBI won’t stand in court for one session. Medical advice is a serious matter, this is trivial comparatively.

Even there if people fought that in court, it’ll go to supreme court. In any case, as per constitution - you can profess to be a doctor as long as you don’t lie about your education and certifications.

As such, because of this rule, serious discussion are not happening in forums like these, which is also a great case AGAINST the rule.


Nothing stops anyone from discussing stocks and businesses or industries. People just need to NOT give buy or sell recommendations.

If i write that i am buying xyz stock @10 and expect that the stock will go up to 20 ,in the next 2 months…

Then by doing so i would have effectively circumvented SEBI reqirement of not giving buy recommendation and price targets

In my opinion, that is not a very advisable thing to do. Also, why do you want to give price targets anyway? There is nothing to gain by providing a target price or a recommendation. Why not discuss the merits and demerits of a stock and leave the buy/sell price points with individuals.

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Thats just an illustration of how easily sebi guidelines can be circumvented…just a point in an academic discussion…

Jis gali jana nahi, Uska pata puchne se kya faida :slight_smile:


@Pronod: how does one become a SEBI registered analyst…any formal qualification required or we have to just pass an exam? Can you pl tell


Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.

However, whenever they make public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media, all the provisions of regulations 16 on limitations on trading and 17 on limitations on compensation shall apply mutatis mutandis to him and he shall disclose his name, registration status and details of financial interest in the subject company.

And Securities Contract Regulation 1956 defines securities as follows:

(h) ‚Äúsecurities‚ÄĚ include‚ÄĒ (i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
[(ia) derivative;
(ib) units or any other instrument issued by any collective investment scheme to the investors in such schemes;]
(ic) security receipt as defined in clause (zg) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;]

[(id) units or any other such instrument issued to the investors under any mutual fund scheme;]

(ii) Government securities;

(iia) such other instruments as may be declared by the Central Government to be securities; and

(iii) rights or interest in securities

Pl note the usage of the term securities in SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014 and the definition of securities as given in the regulation of 1956.

If a person offers opinion on the present market cap of a company and expectations about the future market capitalisation of the company, without making a reference to the stock price (security)…then does it attract the limitations imposed by regulation 16 of the SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014?

Since the discussion has already started, we might as well fully discuss the implications of the same…an academic exercise only.:slight_smile:

I am asking this because I have noticed many analysts / experts give their recommendations in terms of present and future marketcap of a company…for example Porinju quite often utilizes such terminology…

As far as I can understand this act seems intended to rein in the Pump & Dump research analysts, or those with dubious credentials out to dupe the ever gullible small investor. If one reads the act, it is ‚ÄúSEBI Research Analysts Regulations‚ÄĚ intended to regulate Research analysts.

As per the document, there can be two types of Research Analysts, an employed one and an independent one. An RA can be employed at an advisory, or a mutual fund etc. An independent RA is just that, independent. Now lets see what the regulation says:

(h) ‚Äúindependent research analyst‚ÄĚ means a person whose only business activity is research analysis or preparation and/or publication of research report;

(u) ‚Äúresearch analyst‚ÄĚ means a person who is primarily responsible for -

i. preparation or publication of the content of the research report;
ii. providing research report
iii. making 'buy/sell/hold ’ recommendation;
iv. giving price target;
v. offering an opinion concerning public offer

with respect to securities that are listed or to be listed in a stock exchange, whether or not any such person has the job title of ‚Äėresearch analyst‚Äô and includes any other entities engaged in issuance of research report or research analysis.

From the above, the key intent is to rein in Research Analysts, whether so by title or not, whose job or business is to hand out research reports.

Now what about most of us, who have other day jobs, but indulge in analysis?

Chapter 3:
3.(1) On and from the commencement of these regulations, no person shall act as a research analyst or research entity or hold itself out as a research analyst unless he has obtained a certificate of registration from the Board under these regulations

Ok, so if one does not indulge in business of research reports, nor take up a part time job of research analysis, what is to stop an Average Arun or a Common-man Chintan from forming, holding and propagating an opinion?

Chapter 3 has sections on compensation of Research Analysts as well as Limitations on Publication of research reports. Compensation section is about avoidance of conflict of interest between the merchant banking section and Research section. Is this at all applicable to most of us here? No. We are not paid Research professionals at all.

The Limitation section is again about avoiding conflict of itnerest in case of under-writing, merchant banking activities of the entity where the RA is employed. Again, is this applicable to the blogger Basu? No.

The spirit and letter of the act does not seem to inhibit any normal Nishkant from analyzing, or recommending any stock whatsoever, as long as he makes it clear that he is not a RA and there is no business involved in the research report.


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Some related news on the topic:
##SEBI tries to roll back technology -To prevent the dissemination of manipulative stock tips, SEBI is trying to prevent the use of modern means of communications

do you have a link to that consultation paper itself.?

Thanks for posting the link, @pronod

I did go through the document & perhaps I am only seeing what I want to see, but this case actually fortifies whatever I have been saying:

On the basis of the aforesaid facts, it is prima facie observed that Anirudh Sethi is charging fees for the investment advisory services and researchanalyst services he is providing to the investors.

5.In the context of the information available and analysis of the same, it is prima facie observed that:a.Anirudh Sethi is engaged in providing investment advisory services to investors on payment of fees as discussed in the preceding paragraphs, which prima facie fall under the definition of ‚Äúinvestment adviser‚ÄĚ as defined by Regulation 2(m) of the SEBI (Investment Advisers) Regulations, 2013(Investment Advisers Regulations), which reads as under: ‚Äúinvestment adviser‚ÄĚ means any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes any person who holds out himself as an investment adviser, by whatever name called;‚ÄĚ.

This person apparently charged 36,000 per client and was offering Advisory services to his clients. In month of August 2013, there were 313 clients that offered him 36000 for his services. This, as per SEBI can only be done by a Research Analyst who is registered.

Sorry for more quoting, but order says> … I am convinced that Mr. Anirudh Sethi is prima facieengaged in providing investment advisory services and also services of a research analyst to clients for consideration without obtaining registration from SEBI, and as a result of the aforesaid activities, he has violated Section 12(1) of SEBI Act, 1992 read with Regulation 3(1) of Investment Advisers Regulationsand Regulation 3(1) of Research Analysts Regulations.

This almost makes it sound like how can someone publish a report for money without first paying me a fee :smile:

I have to disagree with the statement about having to prove not guilty should SEBI declare someone guilty, that is not how Justice works in most countries including India. It is always Innocent until proven guilty. The only exceptions that I know of are under IPC 354 ( outraging modesty of a woman) and dowry related cases.