SEBI in its recent circular cautioned investors stating that various entities are soliciting investors by offering leagues/schemes/competitions etc. related to securities markets. Few Brokers, Associates and third parties are offering trading comptition to attract traders/investors and some of the schemes may involve distribution of prize monies. 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 recognized Exchange(s).
So any kind of disputes relating to such schemes or enforcement of any agreement / MoU, etc., none of the following recourses will be available to investors
of such schemes:
1. Benefits of investor protection under SEBI/ Exchange(s) Jurisdiction
2. Exchange dispute resolution mechanism
3. Investor grievance redressal mechanism administered by Exchange(s)
Means those schemes will not come under SEBI’s Jurisdiction to protect investors and investors cannot raise any greviance and exchanges/SEBI will not be responsible for such dispute resolution. If you are aware about such schemes or trading competition do it at your own risk is the notice from SEBI!
Read the Circular