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Sebi famous that some digital platforms are facilitating the buying and selling of unlisted securities with out correct authorisation.
SEBI Bhavan at BKC Bandra in Mumbai (PTI/ File Photo)
Markets regulator Sebi on Monday warned buyers towards conducting transactions in securities of unlisted public restricted corporations on unauthorised digital platforms and web sites.
The markets watchdog highlighted that such actions violate the Securities Contracts (Regulation) Act, 1956, and the SEBI Act, 1992, each aimed toward safeguarding the pursuits of buyers within the securities market.
In its assertion, Sebi famous that some digital platforms are facilitating the buying and selling of unlisted securities with out correct authorisation.
Cautioning buyers, the regulator requested them “to not conduct any transactions on such digital platforms or share any delicate private particulars on the identical as these platforms are neither authorised nor recognised by Sebi”.
This cautionary assertion got here following an identical warnings from the regulator relating to unauthorised digital buying and selling platforms, paper buying and selling, fantasy video games, and platforms providing unlisted debt securities.
In the newest launch, Sebi emphasised that solely recognised inventory exchanges are authorised to offer platforms for fundraising and buying and selling securities of listed or “to-be-listed” corporations.
The listing of Sebi-recognised inventory exchanges is accessible on the regulator’s official web site.
Additionally, the regulator cautioned buyers towards sharing delicate private data on unauthorised platforms and fascinating in transactions via them.
Further, the regulator mentioned that these platforms are neither authorised nor recognised, and buyers partaking in such actions wouldn’t be entitled to important protections, comparable to investor safety underneath Sebi’s or inventory exchanges’ jurisdiction, entry to grievance redressal mechanisms administered by exchanges and dispute decision providers provided by authorised entities like smartodr.in.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
