Sebi cautions investors against dealing with unregulated platforms offering algo trading, warns not to share sensitive details

The Securities and Exchange Board of India (Sebi) on Friday cautioned investors against dealing with unregulated platforms offering algorithmic trading. The market regulator also warned them against sharing sensitive personal details with such businesses, as per PTI report.

"These platforms are unregulated and thus there is no investor grievance redressal mechanism covering their activities," Sebi said.

"Investors are therefore cautioned against dealing with such unregulated platforms and cautioned against sharing any sensitive personal details with such platforms," it added.

PTI said after the capital markets regulator noticed that many unregulated platforms are offering investors algorithmic trading services or facilities to automate their trades, Sebi issued the announcement.

Strategies are being marketed with "claims" of huge returns on investment, as well as "ratings" and assertions that equivalent returns would be made in the future, PTI said.