The Securities and Exchange Board of India (SEBI) on November 04, 2024, issued an advisory on unauthorized virtual trading/gaming platforms.
It has come to the notice of the Securities and Exchange Board of India (SEBI) that some apps/web applications/platforms are offering virtual trading services or paper trading or fantasy games to the public based on the stock price data of listed companies. Such activities violate the Securities Contract (Regulation) Act, 1956 and SEBI Act, 1992 which are laws designed to protect investors.
SEBI is issuing this caution, advising investors to not engage with or undertake investment or trading activities through unregistered intermediaries/web applications/platforms/apps. The investors may note that for any kind of disputes relating to such activity, none of the following recourses will be available to investors:
• Benefits of investor protection under SEBI/Exchange(s) Jurisdiction including SCORES.
• Investor grievance redressal mechanism administered by Exchange(s) or the online dispute resolution mechanism administered by Exchanges/Depositories.
[PR No.27/2024]
