Sebi cautions investors against illegal prize money schemes

FPJ BureauUpdated: Thursday, May 30, 2019, 12:59 PM IST
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New Delhi : Markets regulator Sebi today cautioned investors against participating in unauthorisedprize money schemes and competitions linked to stock markets as also against the digital fund-raising platforms operating on the lines of stock exchanges without regulatory approval.

The advisory follows several such ‘trading leagues’ coming to light, including one by a film star and her husband, wherein the general public is asked to guess returns for some particular stocks and get prizes for right bets, among others.

The regulator also warned investors to keep away from fraudulent research analysts and investment advisors peddling stock tips and other investment-related advice through SMSes, social media and other public platforms. Sebi has found that various entities are soliciting investors by offering leagues/schemes/competitions related to securities markets. Some of the schemes involve distribution of prize money.

Participation in such schemes including sharing of confidential and personal trading data is at investors’ own risk, cost and consequences as such schemes are neither approved nor endorsed by Sebi.   Sebi has cautioned investors about such schemes offered by third party or group company/associate of stock broker, among others.

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