Sebi's Warning on Opinion Trading Platforms

Markets regulator Sebi has issued a cautionary note to the general public regarding their participation in opinion trading platforms. These platforms encourage clients to bet on binary outcomes, such as 'yes' or 'no', with payouts dependent on the outcome of the underlying event.

Understanding the Risks

These platforms often mimic investment venues by using terminology like profits, stop loss, and trading operations. However, Sebi clarifies that opinion trading does not fall under its regulatory purview since what is traded is not a security. This means no investor protection mechanisms under the securities market are available for such activities.

Regulatory Oversight

Sebi emphasizes that these opinion trading platforms are neither recognized stock exchanges nor do they have Sebi registration or oversight. Investors are urged to exercise caution and be aware of the risks involved in participating in such platforms.