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Informist, Thursday, Dec. 5, 2024

 

MUMBAI – The Securities and Exchange Board of India has issued a caution notice to investors asking them to not engage or undertake investment or trading activities through unregistered intermediaries, web applications or platforms and applications.

 

"It has come to the notice of Securities and Exchange Board of India that unregistered online platforms, inter alia, are offering unlisted debt securities to investors. These platforms are not subject to any regulatory or supervisory oversight, and lack basic investor protection or investor grievance redress mechanisms. The public is urged to exercise caution in undertaking transactions on such unregistered platforms," SEBI said in a circular.

 

The regulator said that if these securities are sold to more than 200 investors, then it would make it 'deemed to be a public issue' under the Companies Act, 2014. These activities could result in legal, regulatory or enforcement action against those involved in such activities, it warned. Recently, SEBI issued an interim order against four entities operating such unregistered platforms.

 

SEBI has also urged the public to share details of any unregistered entities or platforms offering unlisted debt securities with the help of the market intelligence portal.  End

 

Reported by Kshipra Petkar

Edited by Ashish Shirke

 

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