Overview

• SEBI has issued a formal advisory cautioning the public to avoid opinion trading platforms, which operate outside its regulatory framework.
• These platforms allow users to bet on binary yes/no outcomes of real-world events, with payouts dependent on event results.
• SEBI clarified that opinion trading does not involve securities under Indian law, leaving these platforms unregulated and their users unprotected by securities market laws.
• The regulator warned that if opinions traded qualify as securities, such activity would be deemed illegal, and platforms could face enforcement actions.
• Recognised stock exchanges have been directed to take appropriate action against any violations related to these platforms.