Sebi warns against unauthorised platforms for unlisted securities

The Securities and Exchange Board of India (Sebi) has issued a warning against dealing in unlisted securities on unauthorised electronic platforms.

 

In a press release, Sebi highlighted that these platforms operate in violation of the Securities Contracts (Regulation) Act, 1956, and the Sebi Act, 1992, which are designed to protect investors' interests.

 

The regulator emphasised that investors should refrain from engaging in transactions on these platforms and avoid sharing any sensitive personal details.

 

It further clarified that only recognised stock exchanges are authorised to provide platforms for trading in securities of "to-be-listed" and "listed" companies. A list of Sebi-recognised stock exchanges is available on the Sebi website.

 

 

Sebi warned that investors who transact on unauthorised platforms risk losing investor protection benefits, grievance redressal mechanisms, and online dispute resolution mechanisms administered by exchanges or depositories.

 

Sebi has previously cautioned the public about such activities through press releases issued in August 2016 and recently regarding unauthorised virtual trading platforms and unregistered online platforms offering unlisted debt securities.