‘Opinion Buying and selling platforms’ present their customers or individuals a platform to commerce/enter into preparations the place the payout relies on the end result of a sure/no proposition of occurring or not occurring of the underlying occasion.
Sebi famous that in some instances, opinion buying and selling platforms are designed in a way in order to resemble an funding platform as they use terminologies carefully related to trades in securities for example income, cease loss, buying and selling amongst others.
Sebi mentioned that opinion buying and selling usually doesn’t fall inside its regulatory purview as what’s traded isn’t safety. “Traders/individuals needs to be conscious that no investor safety mechanism beneath securities market purview shall be obtainable for such funding/participation,” the discharge mentioned.
It went on to refer it as “unlawful” as no platform offering opinion buying and selling can qualify to be recognised inventory change and is neither registered or regulated.
“Any buying and selling of securities on them is against the law (in case among the opinions traded qualify as safety). Such platforms are liable to face motion for violation in that case,” the discharge mentioned. It has additionally requested recognised inventory exchanges like NSE and BSE to provoke applicable motion for such violations.
