The Securities and Exchange Board of India (SEBI) on December 09, 2024, notified regarding the Transaction in Securities of Unlisted Public Limited Companies on Electronic Platforms.
It has come to the notice of SEBI that certain electronic platforms and/or websites are facilitating transaction in unlisted securities of public limited companies. Such activities are in violation of Securities Contract (Regulation) Act, 1956 and SEBI Act, 1992 which are, inter alia, laws designed to regulate and protect the interest of investors in securities market.
Investors are advised not to conduct any transactions on such electronic platforms or share any sensitive personal details on the same as these platforms are neither authorized nor recognized by SEBI.
SEBI is issuing this caution to investors to not engage with and undertake investment and trading activities through un-registered web applications/ electronic platforms. Investors may note that for any kind of disputes relating to such activity, none of the following recourses will be available to investors of such platforms:
• Benefits of investor protection under SEBI/ Exchange(s) Jurisdiction
• Investor grievance redressal mechanism administered by Exchange(s) or the online dispute resolution mechanism administered by Exchanges/Depositories (smartodr.in).
[PR No. 34/2024]
