SEBI issued a press release cautioning investors against conducting transactions or trading in unlisted securities of public limited companies through certain electronic platforms and websites that facilitate such activities. SEBI noted that it had previously issued advisories on December 9, 2024, and August 30, 2016, warning investors against using such platforms and sharing sensitive personal information. It also referred to earlier warnings regarding unauthorized virtual trading, paper trading, fantasy gaming platforms, and unregistered online platforms dealing in unlisted debt securities. SEBI reiterated that these platforms are neither authorized nor recognized by it and emphasized that only recognized stock exchanges are authorized to provide platforms for fundraising and trading in securities. Investors were warned about the risks associated with participating on such platforms and sharing personal details. SEBI further clarified that investors using these platforms would not have access to investor protection benefits under SEBI or stock exchange jurisdiction, nor to exchange-administered grievance redressal or online dispute resolution mechanisms.
Securities and Exchange Board of India
PR No.32/2026
Transaction in Securities of Unlisted Public Limited Companies on various Platforms
1. It has come to the notice of SEBI that certain electronic platforms and/ or websites are facilitating transactions/ trading in unlisted securities of public limited companies.
2. SEBI has earlier issued Press Releases dated December 09, 2024 and August 30, 2016 which, inter-alia, advised the investors against conducting any transactions and sharing sensitive personal details on such platforms. Further, SEBI has also issued Press Releases on unauthorised virtual trading platforms offering virtual trading/paper trading/fantasy games and unregistered online platforms offering unlisted debt securities, which inter alia cautioned the public against such activities.
3. Investors are once again cautioned about the risks in conducting any transactions/ trading on such electronic platforms or sharing any sensitive personal details on the same as these platforms are neither authorized nor recognized by SEBI. It is to re-iterate that only recognized stock exchanges are authorised to provide a platform for fund raising and trading in securities. The details of SEBI recognized stock exchanges are available on the SEBI website sebi.gov.in.
4. Investors may note that for any kind of disputes relating to participation on such platforms, none of the following recourses will be available to investors of such platforms:
- Benefits of investor protection under SEBI/ Exchange(s) Jurisdiction
- Investor grievance redressal mechanism administered by Exchange(s) or the online dispute resolution mechanism administered by Exchanges/Depositories (smartodr.in).
Mumbai
June 17, 2026
