Subscribe To Print Edition About The Tribune Code Of Ethics Download App Advertise with us Classifieds
search-icon-img
  • ftr-facebook
  • ftr-instagram
  • ftr-instagram
search-icon-img
Advertisement

Sebi cautions investors against unauthorized virtual trading, gaming platforms

Advisory came after Sebi noticed that some apps/web applications are offering virtual trading services or fantasy games to public based on stock price data of listed companies
  • fb
  • twitter
  • whatsapp
  • whatsapp
featured-img featured-img
Sebi reiterated that public can invest and undertake trading activities in securities markets only through/with registered intermediaries. Reuters file
Advertisement

Markets regulator Sebi on Monday cautioned investors against undertaking trading activities through virtual trading or gaming platforms and asked them to deal only through registered intermediaries.

The advisory statement came after the Securities and Exchange Board of India (Sebi) noticed that some apps/web applications/platforms are offering virtual trading services or paper trading or fantasy games to the public based on stock price data of listed companies.

Such activities are in violation of Securities Contract (Regulation) Act, 1956 and Sebi Act, 1992 which are laws designed to protect investors, the regulator said.

Advertisement

In a statement, Sebi reiterated that the public can invest and undertake trading activities in the securities markets only through/with registered intermediaries.

“Participation in unauthorized schemes, including sharing of confidential and personal trading data, is at the investors' own risk, cost and consequences, as such schemes/platforms are not registered with Sebi,” it added.

Advertisement

Cautioning investors, Sebi asked them not to engage with or undertake investment or trading activities through un-registered intermediaries/web applications/platforms/apps.

For any kind of disputes relating to engaging with such activities, mechanisms such as benefits of investor protection under Sebi or exchanges jurisdiction including SCORES, investor grievance redressal mechanism administered by exchanges or the online dispute resolution mechanism administered by exchanges/depositories, would not be available to investors, it added.

Earlier in August 2016, Sebi had cautioned the public against leagues/ schemes/competitions related to securities markets, which might involve distribution of prize money.

Advertisement
Advertisement
Advertisement
Advertisement
tlbr_img1 Home tlbr_img2 Opinion tlbr_img3 Classifieds tlbr_img4 Videos tlbr_img5 E-Paper