SEBI advises investors to note that in general, opinion trading does not fall within regulatory purview of SEBI, as what is traded is not security. Investors/participants should be aware that no investor protection mechanism under securities market purview shall be available for such investment/participation.
Since none of the platforms providing opinion trading can qualify to be recognized stock exchange, and are neither registered or regulated by SEBI, any trading of securities on them is illegal (in case some of the opinions traded qualify as security). Such platforms are liable to face action for violation in that case. Recognized stock exchanges are advised to initiate appropriate action for such violations. Even in this case investor/participants are made aware that none of the investor protection mechanisms shall be available as their trades will not be on a recognized stock exchange.
