MUMBAI: Markets regulator Sebi on Tuesday cautioned the general public about their participation in opinion trading platforms that induce clients to bet on binary outcomes like ‘yes’ or ‘no’. On such platforms (also called apps), the payout depends on the outcome of the yes/no proposition of the happening or not happening of the underlying event, it said.
The regulator stated that opinion trading platforms often present themselves as investment venues by incorporating terminology typically associated with securities trading, such as profits, stop loss, and trading operations. “Investors are advised to note that, in general, opinion trading does not fall within the regulatory purview of Sebi, as what is traded is not a security. Investors and participants should be aware that no investor protection mechanism under the securities market purview shall be available for such investment and participation.”
These opinion trading platforms cannot be classified as recognised stock exchanges, nor do they have Sebi registration or oversight, the release from the regulator said.