If If you invest in the stock market then this news is for you only. SEBI issued a warning to stock market investors on Monday. SEBI has cautioned investors against transacting through online trading or 'gaming' platforms. SEBI suggested investors to trade only through registered intermediaries. Let us tell you that SEBI has issued this consultation statement after taking cognizance of the cases of some apps/web applications/platforms offering online trading services or paper trading or fantasy games to the people on the basis of share price data of listed companies.
Investors themselves will be responsible for losses and consequences
SEBI said in its statement, such activities are in violation of the Securities Contracts (Regulation) Act 1956 and SEBI Act 1992, designed to protect investors. SEBI in its statement emphasized that people can invest and trade activities in the equity market only through registered intermediaries. “Investors are solely responsible for the losses and consequences of being associated with unauthorized schemes, including sharing of confidential and private transaction data, as such schemes/platforms are not registered with SEBI,” it said.
If you don't agree, you will have no option but to repent.
Cautioning investors, SEBI said that they should not engage in investment or trading activities through unregistered intermediaries/web applications/platforms/apps. It added that investors will not be entitled to investor protection under the jurisdiction of SEBI or the stock exchange for any disputes arising out of such activities, including 'Scores'. Not only this, systems like online dispute resolution mechanism, investor grievance redressal mechanism etc. administered by the stock exchange will also not be available to them.
With PTI inputs
Image Credit: India-Tv.