The warning comes in the backdrop of recent newspaper advertisements promising unusually high guaranteed returns - promotions which attracted widespread criticism on social media for misleading investors. SEBI said unregistered platforms function without regulatory supervision and lack formal investor protection mechanisms, including grievance redressal. Their operations, the regulator noted, may also violate provisions of the Companies Act, 2013 and the SEBI Act, 1992.
The market regulators also reminded investors that an interim order was issued on November 18, 2024, against similar entities involved in the selling of unregulated bonds. Urging caution, SEBI advised investors to check the registration status of any OBPP before making transactions and to only rely on such platforms that have secured official approval. The regulator added that the details relating to registration are available on their website.
Earlier, the Bombay Stock Exchange (BSE) warned investors about miscreants using photos of BSE officials to create fake social media IDs to spread misleading wealth advisory. "It has come to the attention that photos of senior BSE officials are being used to create fake social media IDs. The IDs created claim to provide a wealth advisory solution to mislead gullible investors," the stock exchange said in a statement.
Investors should not be misled by such false misrepresentations, even though BSE officials are permitted to start or support any wealth management or advisory services in any capacity. "Investors are urged not to rely on any stock/share recommendation from any such fake social media handle and verify the source of communication before making any investment decisions," the stock exchange said. Further, BSE advised investors to engage with only registered intermediaries whose list is available on SEBI and BSE websites.
About The Author
Comment List