SEBI Cracks Down on Unregulated 'Opinion Trading' Platforms

Indian market regulator SEBI has come out with a strong warning against unregulated opinion trading platforms, which enable individuals to bet on binary events (e.g., election results, cricket matches) with terminologies such as "profits" and "stop loss" to resemble securities trading. These platfor...

Indian market regulator SEBI has come out with a strong warning against unregulated opinion trading platforms, which enable individuals to bet on binary events (e.g., election results, cricket matches) with terminologies such as "profits" and "stop loss" to resemble securities trading. These platforms are outside the regulatory purview of SEBI, and they do not provide any investor protection or legal recourse. SEBI clarified that such platforms are illicit if they trade in securities, and even opinion trading not based on securities is unregulated. Traditional exchanges BSE and NSE have been instructed to maintain vigil and initiate action against violators. The advisory cautions of risks of monetary loss, addiction, and fraud, especially for retail investors lured by gamified platforms. Sources: SEBI, Economic Times, NDTV Profit