Pay attention to foreign websites offering financial transactions: SEBI

L & # The regulator has also cautioned all investors "not to participate in such web portals or unregulated entities offering securities transactions (including derivatives) executed or implemented on the exchange terminal or the exchange of securities. foreign platforms ".

On Tuesday, the Securities and Exchange Board of India (SEBI) warned investors against dealing with web portals and online businesses offering a variety of financial products, including various types of derivatives, traded on a platform at l & # 39; abroad.

s to attract customers, solicit their business through various means of communication such as e-mails, blogs, advertisements, websites, e-mails, leaflets / brochures, applications, calls, etc., as well as many entities / portals offering free online registration without complying with it. with the Know Your Customer (KYC) basic procedures and often offer a high level of leverage, brokerage and other incentives to trading on offshore platforms / exchanges, "said SEBI.

The regulator stated that such portals are not monitored by any regulatory body. body in India.

"… the inherent complexity of the products offered by these companies, web portals and platforms may not match the risk profile of investors and their excessive leverage may result in significant losses for investors," said SEBI .

The regulator also warned all investors "to avoid participating in such unregulated web portals or entities offering securities transactions (including derivatives) ex

SEBI also stated that investors dealing with such web portals will not use the dispute resolution mechanism or the investor grievance mechanism, such as investors trading recognized scholarships in India. .

"Based on the foregoing, all investors are cautioned to avoid participating in such unregulated portals / web-based entities offering securities transactions (including derivatives) executed or performed at the terminal. Foreign exchanges / platforms, "said SEBI.

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