Mumbai, February 27: India’s capital market regulator, the Securities and Exchange Board of India (SEBI), has issued a stern warning to investors amid a surge in fraudulent activities involving fake Securities Transaction Tax (STT) notices and dubious ‘account handling’ services.
Scammers are dispatching counterfeit notices demanding payment for alleged outstanding STT dues. These deceptive documents mimic SEBI’s official letterhead, logo, and seals, falsely claiming authority under the SEBI Act, 1992. The regulator emphasized that such tactics are designed to panic investors into hasty payments.
In a separate advisory, SEBI cautioned against so-called Portfolio Management Service (PMS) providers and ‘expert fund managers’ who promise risk-free profits on Demat or trading accounts. These fraudsters showcase fabricated trade records in other investors’ names to lure victims with illusions of massive gains.
SEBI clarified a crucial fact: STT is automatically collected by brokers at the time of each trade, as mandated by the Finance Act, 2004. The regulator does not issue any demand notices for STT. Investors are urged to verify any communication purporting to be from SEBI before acting.
Official SEBI emails end exclusively with @sebi.gov.in, and all enforcement actions are published on its website. Any online payments for orders, settlements, or recoveries must be made only through SEBI’s authorized payment gateways.
Fraudsters are impersonating SEBI officials, using fake identities for offices and email IDs to contact victims. They employ forged letterheads, logos, and seals to add credibility to their scams.
To stay safe, investors should deal only with SEBI-registered intermediaries and use verified trading apps. Registration status of any entity can be checked on SEBI’s official website.
Recently, SEBI launched ‘SEBI Check’, a new feature allowing investors to scan QR codes or enter bank details to verify the authenticity of a registered intermediary’s UPI ID or bank account.
This proactive alert underscores SEBI’s commitment to protecting retail investors from evolving cyber threats in the financial markets. Vigilance remains the best defense against such sophisticated scams.