SEBI cautions investors against trading via unregistered digital platforms
This story was originally published at 20:52 IST on 9 December 2024
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MUMBAI – The Securities and Exchange Board of India on Monday cautioned investors about transactions in securities of unlisted public limited companies through unregistered web applications or electronic platforms. Such activities are in violation of the Securities Contract (Regulation) Act, 1956 and the SEBI Act, 1992, which are designed to regulate and protect the interest of investors in securities market.
Investors who are engaged in such unregulated transactions will neither get the benefits under the regulator's jurisdiction nor the grievance redressal mechanisms administered by SEBI, it said in a press release. The regulator in its press release advised investors not to conduct any transactions or share any sensitive personal details on unauthorised virtual trading platforms. In August 2016, the market regulator gave similar warnings to investors about digital platforms which were allegedly facilitating investment in the form of private placement with companies. End
Reported by Ayushman Mishra
Edited by Akul Nishant Akhoury
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