- SEBI warns against unregistered virtual trading and fantasy stock market apps, citing potential violations of Indian securities regulations.
- The advisory urges investors to avoid unregistered trading platforms, stressing participation is at the user’s own risk and consequences.
India’s Securities and Exchange Board (SEBI) has issued an advisory cautioning the public against engaging with apps and platforms offering virtual trading, paper trading, or stock market fantasy games based on listed company data.
SEBI highlighted that these activities violate the Securities Contract (Regulation) Act, 1956, and the SEBI Act, 1992, which aim to protect investor interests.
Recently, the Reserve Bank of India (RBI) updated its warning list to include several contracts for differences (CFDs) brokers and prop trading platforms, as RBI regulates forex brokers, and SEBI governs securities markets.
SEBI also emphasized that participation in unregistered schemes is at the investor’s own risk, urging caution in trading activities through unregistered intermediaries or web platforms.
