The regulator's action, which follow four earlier orders passed in the past twelve months, aim to signal growing concern that retail investors are being lured into stock market investments by companies and individuals who are not authorized to offer financial advice.
The Securities and Exchange Board of India's (Sebi) rules say that only advisers registered with it can offer investment advice.
Action against these entities could range from a complete ban from accessing capital markets to penalties and the refunding of gains made from the wrongful acts, the first person cited above said.
Companies potentially facing enforcement action are digital investment platforms which offer financial products and investment advice without appropriate regulatory licences, the people said.
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