| Company | Value | Change | %Change |
|---|
In its 9 December press statement, SEBI said, “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.”
The regulator referred to a 2016 circular where it had similarly cautioned investors. The earlier statement had highlighted risks associated with schemes involving securities markets, fundraising platforms resembling private placements, and unregistered investment advisors.
“It has come to the notice of SEBI that various entities are soliciting investors by offering leagues/schemes/competitions etc. related to securities markets,” the 2016 circular stated. It also warned that participation in such schemes is at the investor’s own risk, as they are neither approved nor endorsed by SEBI or recognised exchanges.
In its latest caution, SEBI emphasised that only recognised stock exchanges are authorised to provide platforms for fundraising and trading in securities of listed and to-be-listed companies. Investors were also urged not to share personal details with unauthorised platforms.
For further clarity, SEBI advised investors to verify the list of recognised exchanges available on its website.
