Advisory in respect of Foreign Trading Portals
It 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 platform/exchange.
Such 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.
In 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 to them:
This Press Release is issued in the interest of investors in the securities market.