The Chairman of Securities and Exchange Board of India (SEBI) C B Bhave on Friday alerted investors about the risky capital market. Addressing a national seminar on investors protection Bhave said, "The investors must be careful about the risky market and should be familiar with the processes of getting away from fraudulence."
SEBI is getting stronger and intensifying surveillance over the capital market, he said. Bhave said SEBI has collected Rs 25 crore (Rs 250 million) in the last 14 years as penalty from the companies or financial institutions who had violated the capital market.
People often get into the trap of illegal financial companies who assure to provide them hefty returns within a shot span of time.
"SEBI is gradually changing its mechanism so that the fraudsters can not cheat the investors in the capital market, he added.
He said ASBA (application supported by blocked amounts) is a system introduced by SEBI for protection of the initial public offers by which applicant's account can be protected until shares are allotted to him.
