SEBI Warns Investors Against Trading Unlisted Shares On Unauthorised Platforms

The Securities and Exchange Board of India (SEBI) has cautioned investors against trading securities of unlisted public limited companies through unauthorised electronic platforms and websites.

In a press release issued on Tuesday, SEBI said it had come to its notice that certain electronic platforms and websites were facilitating transactions and trading in securities of unlisted public limited companies.

It stated that press releases were earlier issued cautioning investors against conducting transactions or sharing sensitive personal information on such platforms.

“Investors are once again cautioned about the risks in conducting any transactions/ trading on such electronic platforms or sharing any sensitive personal details on the same as these platforms are neither authorized nor recognized by SEBI.” it emphasized

It said that only recognised stock exchanges are authorised to provide platforms for fund raising and trading in securities.

The regulator further clarified that investors using such platforms would not have access to investor protection benefits available under the jurisdiction of SEBI and stock exchanges, nor would they be able to avail grievance redressal and online dispute resolution mechanisms administered by stock exchanges and depositories.