Equity/stocks advise

Alfesaani. (Querist) 18 February 2026 This query is : Resolved
Hello. Is it legal for a person to give recommendation on stock buying and selling in lieu of a part of the profit? For example, if a stock adviser provides his stock buying recommendation on the condition that at the end of the month a fixed per percentage of the profit made from those recommendations will be shared with him: will this be legal under Indian laws?

Thanks in advance.

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This discussion explores the legality of receiving stock market advice in exchange for a percentage of profits under Indian law. While a contractual agreement might seem valid, it's crucial to note that providing investment advice for compensation in India generally requires registration as an Investment Advisor (RIA) with SEBI. The specific profit-sharing condition mentioned is also considered too vague to be practically enforceable.

T. Kalaiselvan, Advocate (Expert) 19 February 2026
If they are entering into such contractual agreement then there should not be any invalidity in that provided the contract is not null and void

kavksatyanarayana (Expert) 19 February 2026
Yes, in India, it is mandatory to register as an Investment Advisor (RIA) with the SEBI to provide stock/equity advice for compensation.

P. Venu (Expert) 04 March 2026
The condition is too vague to be implemented or given effect.

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