The Securities and Exchange Board of India (SEBI) on 10th June 2022, has cautioned the investors against dealing with unregulated platforms and sharing any sensitive personal details with such platforms.
It has come to the notice of SEBI that many unregulated platforms are offering investors Algorithmic Trading services/facilities to automate their trades Strategies are being marketed with “claims” of huge return on investment along with “ratings” assigned to the strategies and claims that similar returns would be earned in the future. Investors are cautioned that these platforms are unregulated and thus there is no investor grievance redressal mechanism covering their activities.
Algorithmic trading platforms offer services like generating orders at a super-fast speed by use of advanced mathematical models that involve automated execution of trade.
