Sebi warns of no regulatory recourse for investors trading in unlisted securities

SEBI warned investors that digital platforms offering trading in unlisted securities are neither recognized nor authorized by the regulator, and any disputes on such platforms will leave investors without regulatory recourse. The market watchdog advised the public against sharing sensitive personal details on these websites and reiterated that only recognized stock exchanges are permitted to provide infrastructure for fundraising and securities trading. SEBI also noted that it has previously issued similar warnings, including most recently in 2024, against unauthorized platforms including those offering fantasy games and unlisted debt securities.