Sebi will introduce an early-warning system, similar to the riskometer for mutual funds, to caution people about the risks of investing in a particular stock. Mutual funds have a similar system called a riskometer. Singapore has a system of automatic “trade with caution” alerts which are generated when trading activity in a stock cannot be explained based on publicly available information. “Since the equity market is rising steadily, investors are prone to take higher unwarranted risks while attempting to gain from the bull market. Three departments at Sebi are working on creation of an early-warning system,” the person said.

Source: Mint January 03, 2018 23:48 UTC