Apps, web applications, and platforms offering virtual trading services, paper trading, or fantasy games based on stock price data of listed companies, are in violation of the Securities Contracts (Regulation) Act, 1956, and the SEBI Act, 1992, according to a recent press release by Securities and Exchanges Board of India (SEBI)..

SEBI has also stated that any investment made through such apps does not guarantee a return, and SEBI is not responsible for the same.

SEBI has reiterated that the public should invest and undertake trading activities in the securities markets only through registered apps.

Investors should exercise caution while making any investments, conduct proper research on the company/app, and then make their decisions, stated the regulatory board.

According to SEBI, participating in unauthorised schemes and sharing confidential data with the initiators of those schemes is done at the investor's own risk. SEBI does not authorise or take responsibility for such actions.

Notably, SEBI has stated that in case of i any kind of disputes relating to such activities, none of the following resources will be available:

Benefits of investor protection under SEBI/Exchange(s) jurisdiction, including SCORES (SEBI Complaints Redress System).

The investor grievance redressal mechanism administered by Exchange(s) or the online dispute resolution mechanism administered by Exchanges/Depositories (smartodr.in).

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