SEBI on Opinion Trading Platforms today, April 30: SEBI warns against 'Opinion Trading Platforms'; avoid illegal schemes misusing trading terms. Stay informed to protect investments!

The markets regulator has cautioned people to stay away from ‘Opinion Trading Platforms’ where these platforms, in the guise of opinion, are trading securities similar to those of registered investment platforms and are illegal.

They are using similar terminologies like profit, loss, stop loss, trading, and many others to make them sound similar to registered investment platforms.
The market’s watchdog said that investors indulging in either way will not be provided investor protection mechanism under the securities market purview.

“In view of the above, investors are advised to note that, in general, opinion trading does not fall within the regulatory purview of SEBI, as what is traded is not a security,” said the press release.
The platforms providing opinion trading can not qualify to be recognised as a stock exchange and are neither registered nor regulated by SEBI. So, any trading of securities (in case some of the opinions traded qualify as securities) taking place on these platforms is illegal.
Such platforms will be liable to face action for violation. SEBI advised the recognised stock exchanges to initiate appropriate action for such violations.