SEBI Warns Against Trading Unlisted Securities on Unauthorized Platforms
10 Dec 2024 11:17 AM IST
SEBI has issued a cautionary advisory to investors, warning against trading in securities of unlisted public limited companies on unauthorized electronic platforms. (File image)
Mumbai: The Securities and Exchange Board of India (SEBI) has issued a cautionary advisory to investors, warning against trading in securities of unlisted public limited companies on unauthorized electronic platforms.
In a statement, SEBI highlighted that certain electronic platforms and websites have been facilitating such transactions, which violates the Securities Contract (Regulation) Act, 1956, and the SEBI Act, 1992. These laws are intended to regulate and safeguard investor interests in the securities market.
"Investors are advised not to conduct transactions on such platforms or share sensitive personal information, as these platforms are neither authorized nor recognized by SEBI," the regulator said.
SEBI clarified that only recognized stock exchanges are authorized to facilitate fundraising and trading in securities of "to-be-listed" and "listed" companies.
The regulator also cautioned investors that transactions on unregistered platforms would not be protected under SEBI’s investor protection framework. Furthermore, they would not have access to grievance redressal mechanisms or online dispute resolution systems provided by exchanges or depositories.
SEBI’s warning underscores the risks of engaging with unauthorized platforms and urges investors to rely only on recognized stock exchanges for securities transactions.
In a statement, SEBI highlighted that certain electronic platforms and websites have been facilitating such transactions, which violates the Securities Contract (Regulation) Act, 1956, and the SEBI Act, 1992. These laws are intended to regulate and safeguard investor interests in the securities market.
"Investors are advised not to conduct transactions on such platforms or share sensitive personal information, as these platforms are neither authorized nor recognized by SEBI," the regulator said.
SEBI clarified that only recognized stock exchanges are authorized to facilitate fundraising and trading in securities of "to-be-listed" and "listed" companies.
The regulator also cautioned investors that transactions on unregistered platforms would not be protected under SEBI’s investor protection framework. Furthermore, they would not have access to grievance redressal mechanisms or online dispute resolution systems provided by exchanges or depositories.
SEBI’s warning underscores the risks of engaging with unauthorized platforms and urges investors to rely only on recognized stock exchanges for securities transactions.
( Source : Deccan Chronicle )
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