look news india
SEBI Guidelines: Market regulator Securities and Exchange Board of India (SEBI) has warned investors in the stock market. Sebi said investors should avoid unregistered online platforms offering unlisted debt securities. SEBI has issued a notification warning investors about the risks of these platforms.
SEBI has said that such platforms do not come under any regulator or monitoring. They lack basic protections for investors or mechanisms for redressal of investors’ grievances. Therefore investors should avoid transacting on such unregistered platforms. Investors are advised to transact only through SEBI-registered stock brokers operating official online bond platforms through the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).
violation of rules
Sebi said it would also become difficult to provide adequate assistance to investors in disputes related to transactions on unregistered platforms. Such platforms violate several laws including the Companies Act, 2013 and SEBI regulations on non-convertible securities and market practices.
SEBI’s concern
- Lack of regulatory oversight: Such platforms are not subject to the regulatory oversight of SEBI, which can lead to serious losses for investors.
- Lack of investor protection: Investors linked to these platforms may not receive the same protection as investors through registered platforms.
advice to investors
- Caution: Investors are advised to avoid investing in unlisted debt securities through unregistered online platforms.
- Use registered platform: Investors should use online bond platforms operated by SEBI registered stock brokers authorized by BSE or NSE.
- Report suspicious activities: If investors notice anything suspicious, they should immediately report it to the market regulator.