The Securities and Exchange Board of India (SEBI) has issued a public advisory warning investors against engaging with Opinion Trading Platforms. These platforms, according to SEBI, allow users to enter into arrangements where payouts are determined by the outcome of a yes/no proposition—essentially betting on the occurrence or non-occurrence of future events.
SEBI emphasized that such platforms often mimic legitimate investment avenues by using financial market terminology like “profits,” “stop loss,” and “trading,” which may mislead users into believing they are participating in regulated securities markets.
In its official statement, SEBI clarified that these platforms generally do not fall under its regulatory purview as the underlying activity does not involve trading in securities. Consequently, no investor protection mechanisms applicable to securities markets would cover transactions made on these platforms.
The regulator further noted that since these platforms are neither recognized stock exchanges nor registered with SEBI, any trading of securities—if it occurs on these platforms—would be considered illegal. In such cases, both the platforms and their participants may face regulatory action.
SEBI has advised recognized stock exchanges to monitor and take appropriate action against such violations and reiterated that trades executed on unrecognized platforms offer no legal safeguards to investors.
SEBI via its advisory aims to raise public awareness about the risks associated with these platforms and to reinforce SEBI’s role and jurisdiction in maintaining the integrity of India’s financial markets.
It should be noted that the Haryana government’s Prevention of Public Gambling Bill, 2025, passed during the budget session in the state’s Vidhan Sabha, has cast doubts on the operations of opinion trading platforms in India. These platforms are also currently under scrutiny in the Gujarat High Court. Confederation of All India Traders (CAIT) formally urged the Indian government to ban opinion trading apps and websites referring it as ‘Digital Satta’.
Previously, the Confederation of All India Traders (CAIT) formally urged the Indian government to ban opinion trading apps and websites. In a letter addressed to Ashwini Vaishnaw, Minister of Electronics and Information Technology, and Piyush Goyal, Minister of Commerce and Industry, CAIT emphasized the serious risks posed by these platforms, describing them as a form of “digital satta” (online gambling).
CAIT also raised grave concerns about the potential impact of these platforms on India’s democratic processes. The letter warned that prediction-based opinion trading platforms allow users to bet on election outcomes, thereby posing a threat to electoral democracy. Given the widespread reach of these platforms, CAIT cautioned that they could influence public opinion and undermine the integrity of democratic institutions.
Recently, the New Indian Consumer Initiative (NICI) PEN Media Literacy in its latest workshop has decided to send a joint representation letter to the Ministry of Consumer Affairs, the Ministry of Information & Broadcasting, the Ministry of Finance, SEBI, and ASCI, urging a ban on opinion trading platforms in India.
Storyboard18 had earlier reported about the unchecked rise of opinion trading games on real-money gaming platforms, which has drawn the attention of the Ministry of Electronics and Information Technology (MeitY).
Globally, in countries like the United States, the United Kingdom, and Australia, opinion trading apps and websites are classified as wagering platforms and are regulated. However, India still lacks specific legislation to govern these activities.