In its advisory, SEBI sounded the alarm over the growing menace of online platforms offering fantasy games to the public based on stock market data of listed companies.

The regulator also said that users transacting on these illegitimate platforms would do so at their own “risks, costs and consequences.”

In 2016, SEBI issued a circular banning leagues and competitions, involving prize money, linked to securities markets.

Market regulator Securities and Exchange Board of India (SEBI) warned the public on Monday (November 4) against unauthorized online trading and virtual gaming platforms.

In his opinion, SEBI has sounded the alarm facing the growing threat of online platforms offering the public fantasy games based on stock market data of listed companies. Advising the general public not to interact with such sites, the regulator added that users transacting on these illegitimate platforms would do so at their own “risks, costs and consequences”.

“Participation in unauthorized programs, including sharing of confidential and personal trading data, is at the investors’ risks, costs and consequences, as such programs/platforms are not registered with SEBI. SEBI issues this caution, advising investors not to engage or undertake any investment or trading activities through unregistered intermediaries/web applications/platforms/applications,” the statement read. ‘notice.

Calling on investors to invest only in securities markets through registered platforms, the regulator added that such fantasy gaming and virtual trading platforms are violating the Securities Contracts (Regulation) Act, 1956 and the SEBI Act of 1992.

The notice also notes that users of these sites would not be able to benefit from any investor protection benefits through the regulator’s existing grievance and dispute resolution mechanisms.

Notably, this is not the first time that SEBI has flagged such platforms. In 2016, it issued a circular banning leagues and competitions, involving prize money, linked to securities markets.

The guidelines come at a time when the central government is actively cracking down on illegal online betting platforms that lure users with promises of high returns and prizes.

In August this year, reports surfaced that The Enforcement Directorate (ED) was investigating more than two dozen offshore gaming platforms for the delivery and return of funds. In March, the Ministry of Information and Broadcasting (MIB) banned social media influencers from promoting or advertising offshore online betting and gambling platforms.

Earlier this year, the instant messaging platform Telegram was also scrutinized by the Indian government following allegations of extortion and gambling.