Securities market regulator SEBI has cautioned investors about new types of risk emanating from ‘innovative concepts’ such as trading leagues, schemes, and competitions, besides unauthorised electronic platforms.
Absence of recourse
In a caution note, SEBI said participation in such schemes could compromise their trading data and personal information and result in losses, besides the absence of recourse to investor protection under SEBI regulations.
SEBI warned that the cost and consequences was solely on the investor and that such schemes were neither approved nor endorsed by the regulator or its recognised exchanges.
