SEBI Warns Against Unauthorized Trading Platforms

5 Nov 2024 , 12:31 PM

The Securities and Exchange Board of India (SEBI), which oversees the markets, has warned investors once again about the rise in illegal firms providing financial services via platforms and applications.

According to the most recent alert, several apps and websites encourage paper trading, virtual trading, and fantasy games that are based on the stock prices of publicly traded businesses.

In order to maintain safety and compliance, SEBI reiterated that the public should only trade or invest through registered intermediaries, as these activities are against regulations intended to safeguard investors.

It is reaffirmed that only through registered intermediaries may the general public invest in and trade in the securities markets. Investors who participate in unapproved schemes, such as providing private and sensitive trading information, do so at their own risk, expense, and liability because these platforms and schemes are not registered with the authorities, the statement stated.

This is SEBI’s third warning of the year, highlighting the dangers of using unregistered services that could result in losses.

In an advisory published earlier in August 2016, the market regulator cautioned investors against participating in securities market leagues, schemes, or tournaments that could involve prize money distribution.

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