BENGALURU (Reuters) – India’s markets regulator on Monday warned investors against making transactions with unauthorised electronic platforms offering unlisted securities of public companies.
The Securities and Exchange Board of India (SEBI), in a press release, said certain electronic platforms and websites were violating rules by facilitating transactions in unlisted securities of public companies, as these platforms were neither authorised nor recognised by the regulator.
However, the regulator did not name any platform or website.
SEBI’s warning comes amid a surge in trading of unlisted shares of companies like HDFC Bank’s unit HDB Financial and the country’s largest bourse National Stock Exchange of India, sparking concerns of scams targeting retail investors.
“Only recognised stock exchanges are authorised to provide a platform for fund raising and trading in securities of ‘to be listed’ and ‘listed’ companies,” SEBI said.
Last week, the regulator had cautioned the public against using unregistered online platforms offering unlisted debt securities.
The caution followed SEBI’s action on three online bond platforms – altGraaf, Tap Invest and Stable Investments, directing them to stop offering securities for public subscription.
(Reporting by Nishit Navin in Bengaluru; Editing by Vijay Kishore)
