I guess that finally SEBI realized the dangers of brokers recommending stocks. Stock broking companies should not be allowed to offer “tips”. Their job is just to execute the orders from the clients. They should not handhold the clients. It’s a basic common sense, but most of the brokers in India just ignored that. It’s pretty easy for the brokers to “front-run” meaning that brokers can buy certain stocks in advance and then issue the “tips” to innocent customers to buy the same stocks. Brokers will sell their stocks for a quick profit in a day or two.
SEBI finally put a ban on these so called “tips”. More on this in Yahoo.
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