Advisory in respect of Foreign Trading
has come to the notice of Securities and Exchange Board of India (SEBI) that investors
in India are being offered services by various firms through online web portals
to trade in a variety of financial products including various types of
derivatives, which are apparently traded on overseas platform/exchange. These
firms are operating from overseas, but providing/offering services to Indian
residents. These firms/entities in order to attract clients solicit their
business through various means of communications such as electronic messages,
blogs, advertisements, websites, emails, leaflets/pamphlets, apps, calls etc.,
and also many such entities/portals offer free online registration without complying
with the basic Know Your Customer (KYC) procedures and often offer high level
of leverage, low brokerage and other incentives for trading on overseas
firms/web-portals/platforms are not supervised by any Regulatory body in India.
Further, the inherent complexity of the products offered by such
firms/web-portals/platforms may not suit the risk profile of the investors and
their excessive leverage can result in significant losses to investors.
view of above, all investors are cautioned to avoid participating in such
unregulated web portals / entities offering transactions in securities
(including derivatives) which are executed or undertaken on the terminal of
foreign exchanges/platforms. The investors may also note that for any kind
of claim/dispute relating to such participation or enforcement of any
agreement/contract/claim, etc., the following recourses shall not be available
Press Release is issued in the interest of investors in the securities market.