Sebi warns investors against trading unlisted stocks on unauthorised sites

Mumbai, Jun 17, 2026

The market regulator said investors using unregistered platforms for transactions in unlisted securities would not have access to regulatory safeguards or dispute-resolution mechanisms

The Securities and Exchange Board of India (Sebi) on Wednesday issued a fresh warning to investors regarding transactions in unlisted securities of public limited companies conducted through unauthorised electronic platforms and websites.

“Investors are once again cautioned about the risks in conducting any transactions/trading on such electronic platforms or sharing any sensitive personal details on the same as these platforms are neither authorised nor recognised by Sebi,” the regulator said in a press release.

Sebi had earlier issued similar cautions in December 2024 and August 2016, advising investors against conducting any transactions or sharing personal details on such platforms. However, the regulator has noted that such platforms continue to operate and facilitate trading in unlisted stocks.

Highlighting the risks involved, Sebi noted that investors transacting on such unauthorised platforms would not have access to regulatory protections. These include investor-protection benefits under Sebi or exchange jurisdiction, as well as grievance-redressal and online dispute-resolution mechanisms administered by exchanges or depositories.

“It is reiterated that only recognised stock exchanges are authorised to provide a platform for fund-raising and trading in securities,” Sebi said.

On previous occasions, Sebi has also issued cautions against unauthorised virtual trading platforms offering paper trading, virtual trading and fantasy games, as well as against unregistered online platforms offering unlisted debt securities.

[The Business Standard]