Capital markets regulator Sebi on Friday cautioned investors against dealing with unregulated platforms offering algorithmic trading and warned them against sharing sensitive personal details with such businesses.
"These platforms are unregulated and thus there is no investor grievance redressal mechanism covering their activities," Sebi said.
"Investors are therefore cautioned against dealing with such unregulated platforms and cautioned against sharing any sensitive personal details with such platforms," it added.
The statement comes after Securities and Exchange Board of India (Sebi) noticed that many unregulated platforms are offering investors algorithmic trading services or facilities to automate their trades.
Strategies are being marketed with "claims" of huge returns on investment along with "ratings" assigned to the strategies and claims that similar returns would be earned in the future.
