SEBI has issued a cautionary notice regarding certain electronic platforms and websites facilitating transactions in unlisted public limited company securities. These activities violate the Securities Contract (Regulation) Act, 1956 and the SEBI Act, 1992, which aim to regulate and protect investor interests in the securities market.

1. SEBI had earlier issued a Press Release dated August 30, 2016, which cautioned the public against these activities. Recently, SEBI issued a Press Release on Unauthorised Virtual Trading Platforms offering Virtual Trading /Paper Trading/Fantasy Games and unregistered online platforms offering unlisted debt securities, which cautioned the public against such activities.

2. Investors are advised not to engage in transactions on such unregistered platforms and to avoid sharing sensitive personal information, as these platforms are neither authorized nor recognized by SEBI.

3. Only recognized stock exchanges are authorized to facilitate trading and fundraising for “listed” or “to be listed” companies. A list of such exchanges is available on the SEBI website.

4. SEBI cautions that investors who engage with unregistered platforms will not have access to the usual investor protection mechanisms, such as grievance redressal or legal recourse under SEBI or Exchange jurisdiction.

The release is intended to protect investors from fraudulent and unauthorized online platforms.