Checklist for dealing with investment advisers

SEBI (Securities and Exchange Board of India) as we know is very diligent in making decisions with an intention to protect the interest of investors. SEBI on November 29, 2018 released a list of what things they must remember while dealing with investment advisers. Following are the excerpts from the SEBI’s note.
 
"Do’s
 
1. Always deal with SEBI Registered Investment Advisers.
 
2. Check for SEBI registration number. Please  refer  to  the  list  of  all  SEBI  registered Investment Advisers which is available on SEBI website in the following link:

https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13
 
3. Ensure that the Investment Adviser has a valid registration certificate.
 
4. Pay only advisory fees to your Investment  Adviser. Make payments of advisory banking channels only and maintain duly signed receipts mentioning the details of your payments.
 
5. Always ask for your risk profiling before accepting investment advice. Insist that Investment Adviser provides advisory strictly on the basis of your risk profiling and take into account available investment alternatives.
 
6. Ask all relevant questions and clear your doubts with your Investment  Adviser before acting on advice.
 
7. Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making investments.
 
8. Insist on getting the terms and conditions in writing duly signed and stamped. Read these terms and conditions carefully particularly  regarding advisory fees, advisory plans, the category of recommendations etc. before dealing with any Investment Adviser.
 
9. Be vigilant in your transactions.
 
10. Approach the appropriate authorities for redressal of your doubts/grievances. Inform SEBI about Investment Advisers offering assured or guaranteed returns.
 
Don’ts
 
11. Do not deal with unregistered entities.
 
12. Don’t fall for stock tips offered under the pretext of investment advice.
 
13. Do not give your money for investment to the Investment Adviser.
 
14. Don’t fall for the promise of indicative or exorbitant or assured returns by the Investment Advisers. Don’t let greed overcome rational investment decisions.
 
15. Don’t get carried away by luring advertisements or market rumours.
 
16. Avoid only on the basis of phone calls or messages from  any Investment Adviser or its representatives.
 
17. Don’t take decisions just because of repeated messages and calls by Investment Advisers.
 
18. Do not fall prey to limited period discount or other incentive, gifts, etc. offered by Investment Advisers.
 
19. Don’t  rush  into  making  investments  that  do  not  match  your  risk  taking appetite and investment goals.”