PR No.32/2026, Dated: 17.06.2026
SEBI has issued a public caution advising investors not to undertake transactions in the securities of unlisted public companies through electronic platforms, websites or intermediaries that are not authorised or recognised by SEBI.
The advisory seeks to protect investors from risks associated with trading on unregulated platforms that operate outside the securities market framework.
1. Only Recognised Stock Exchanges Can Facilitate Trading
SEBI has reiterated that:
- Fundraising in securities; and
- Trading of securities
can be facilitated only through recognised stock exchanges operating in accordance with the applicable regulatory framework.
Investors are therefore advised to verify the regulatory status of any platform before undertaking transactions in securities.
2. Concerns Regarding Unauthorised Platforms
SEBI observed that certain electronic platforms and websites are facilitating transactions in securities of unlisted public companies without being recognised or authorised under the securities laws.
Transactions executed through such platforms may expose investors to regulatory, operational and settlement risks.
3. No Access to Investor Protection Mechanisms
SEBI has clarified that investors dealing through unauthorised platforms will not have access to the regulatory safeguards available within the recognised securities market ecosystem.
Such investors may not be able to avail themselves of:
- SEBI-administered investor protection mechanisms;
- Grievance redressal facilities; and
- Online Dispute Resolution (ODR) mechanisms.
As a result, investors may face difficulties in resolving disputes or recovering losses arising from such transactions.
4. Advisory to Investors
SEBI has advised investors to exercise caution and undertake adequate due diligence before investing in securities through any online platform.
Investors should ensure that transactions are conducted only through:
- Recognised stock exchanges;
- SEBI-registered intermediaries; and
- Other authorised market infrastructure institutions.
5. Objective of the Advisory
The cautionary statement aims to:
- Protect investors from unregulated trading activities;
- Promote awareness regarding authorised market platforms;
- Prevent potential fraud and investor losses;
- Encourage the use of regulated securities market infrastructure; and
- Strengthen investor confidence in the securities market.
6. Key Takeaway
SEBI has cautioned investors against trading in securities of unlisted public companies through unauthorised electronic platforms or websites. Investors using such platforms may not be entitled to SEBI’s investor protection, grievance redressal and dispute resolution mechanisms. Accordingly, transactions in securities should be undertaken only through recognised and regulated market platforms.
Click Here To Read The Full Press Release
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