SEBI Warns Investors: Avoid These Platforms to Protect Your Investments

Mohan is a 32-year-old IT professional. Recently, he downloaded a new trading app that promised quick profits. He also watched some convincing YouTube videos, so he invested ₹48,000.

After two weeks, he checked his account, showing a zero balance. When he thought of filing a complaint, the app vanished. There was no contact number and no refund. 

He later discovered that the app was not even connected to the real stock market. Unfortunately, thousands of innocents, like Mohan, fall into similar monthly traps.

According to the reports, over 5 crore people use such opinion trading platforms, accounting for a yearly trading volume of over ₹50,000 crore.

Although financial regulations do not recognise such platforms, they attract many users daily.

What Are Opinion Trading Platforms?

There are a lot of websites and mobile apps available where you can place bets about what will happen to the price of a stock in the next few minutes. Such websites and mobile apps are opinion trading platforms.

You might see questions such as:

• “Guess if the index will rise or fall at 2 PM.”
• “Will ABC stock go up in 5 minutes?”

Using such apps, you would not invest in real stocks. Instead, they turn the stock market into a guessing game.

Why SEBI Has Issued A Warning?

The regulator has recently seen the rapid rise of these platforms and is concerned about public interest. You must know these apps are not part of the official trading system.

The main reasons for the warning include the following:

• You might have also seen many influencers promoting these apps without disclaimers.
• There is a risk of data misuse.
• Some of these apps disguise betting as financial knowledge.
• If you lose money on such apps, there is no complaint route.

• Such apps are not registered as brokers or advisors.

   

The Scale Of The Problem

If we take a look at the numbers, then we will see how big this is becoming:

Even if 2% of users become victims of this fraud, that’s still 10 lakh individuals. And if each of them loses ₹10,000, that is a loss of ₹1,000 crore.

How Do These Platforms Trap You?

These platforms mostly lure you with high rewards and aggressive marketing tactics. The following are the general practices they use:

1. Endorsements by Influencers

Promotional videos from social media stars and influencers claim huge earnings.

2. Referral Income

Unknowingly, you become their marketer by luring them with offers like earning ₹100 to ₹500 for every friend you bring in.

3. Quick Payouts

Fast results make you feel like playing a game. Want to get ₹195 on a bet of ₹125? Who would not try this?

4. Use of Real Terms

They use terms such as ‘market’, ‘nifty’, or ‘option’ to make it sound real.

Real Vs. Fake Platforms: Spot The Difference

What Should You Do to Stay Safe?

Final Thoughts

If you are starting with ₹400 or developing a portfolio worth ₹6,00,000, you must always keep your money away from unregulated platforms. Otherwise, you will lose your savings.

When you go through a regulated and trusted route, you get:

• A better chance at regular financial growth
• Guidance that follows proper rules
• Clarity on where your money goes
• Protection for your savings

It is not just about your safety but also about knowing that your money is in the right place. 

FAQs

1. Is it safe to follow market tips on Telegram or WhatsApp groups?

It is not safe unless you know the source is licensed and verified.

2. Can I recover money lost on such platforms?

Well, most probably not. Recovery is difficult as they are not regulated.

3. Do these platforms offer real stock trading?

No, they do not. Generally, they offer prediction games, not real stock trading.

4. While dealing with a broker, how do I know if he is legal or not?

You can easily check this on the SEBI’s official list of registered intermediaries.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?