Sebi Cautions Investors Against Trading Unlisted Public Company Shares on Unauthorised Platforms

New Delhi: Markets regulator Sebi on Wednesday cautioned investors against buying or selling securities of unlisted public limited companies through unauthorised electronic platforms and websites, warning that such entities are neither recognised nor regulated by the watchdog.

The regulator said it has come across certain online platforms facilitating transactions in unlisted securities of public limited companies, exposing investors to significant risks.

In a statement, Sebi reiterated its earlier advisories issued in December 2024 and August 2016, warning investors against conducting transactions or sharing sensitive personal information on such platforms.

The regulator also referred to its previous warnings on unauthorised virtual trading platforms offering paper trading, fantasy games and online platforms dealing in unlisted debt securities.

“Investors are once again cautioned about the risks in conducting any transactions or trading on such electronic platforms or sharing any sensitive personal details on the same, as these platforms are neither authorised nor recognised by Sebi,” the regulator said.

Sebi emphasised that only recognised stock exchanges are authorised to provide a platform for fund-raising and trading in securities. The list of recognised stock exchanges is available on the regulator’s website.

The watchdog further noted that investors participating on such unauthorised platforms would not have access to regulatory safeguards available in the formal securities market.

These include investor protection benefits under the jurisdiction of Sebi and stock exchanges, as well as access to investor grievance redressal mechanisms administered by exchanges and the online dispute resolution platform operated by exchanges and depositories.

Sebi advised investors to exercise caution and verify the legitimacy of platforms before engaging in any securities-related transactions.

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