Ahead of an NSE initial public offering (IPO), India’s markets regulator, SEBI, warns investors against trading in unlisted shares through platforms that are not authorised by the regulator. SEBI’s message is that only recognised stock exchanges are permitted to provide a platform for fundraising and for trading in securities. The regulator cautions investors that dealing in unlisted shares via unauthorised channels can expose them to risks, including fraud and unfair trading practices, as these platforms are not covered by the regulatory framework applicable to recognised exchanges. SEBI’s notice reinforces that fundraising and trading activities in securities must occur through approved market infrastructure. Investors are therefore advised to verify that any platform they use for share transactions is authorised and operates through recognised stock exchanges. The regulator’s warning is intended to reduce the likelihood of investors participating in transactions that fall outside SEBI’s oversight, particularly during periods of heightened market attention linked to the NSE IPO.
SEBI warns investors against trading unlisted shares ahead of NSE IPO
Ahead of an NSE initial public offering (IPO), India’s markets regulator, SEBI, warns investors against trading in unlisted shares through platforms that are not authorised by the regulator. SEBI’s me...
- SEBI issues a warning to investors against trading unlisted shares.
- SEBI cautions against using unauthorised platforms for such trading.
- SEBI says only recognised stock exchanges are authorised to provide platforms for fundraising and securities trading.
- The warning is issued ahead of the NSE IPO.
- SEBI’s message is intended to keep investor activities within the regulator’s authorised framework.
SEBI emphasised that only recognised stock exchanges are authorised to provide a platform for fundraising and trading in securities.
2 months agoSEBI emphasised that only recognised stock exchanges are authorised to provide a platform for fundraising and trading in securities.
2 months ago
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