Under the rule, the FPI funding route is unavailable to resident Indians, with restricted exceptions as outlined within the Sebi’s FPI Regulations.(Representative picture)
The regulator clarified that it has not granted any relaxations to FPIs relating to securities market investments by Indian traders.
Capital markets regulator Sebi lately cautioned traders towards fraudulent buying and selling platforms, claiming to facilitate inventory market entry to Indians by way of Foreign Portfolio Investors (FPIs) route.
The cautionary assertion got here after Sebi acquired a number of complaints relating to fraudulent buying and selling platforms, which falsely claimed affiliation with FPIs and claimed to supply buying and selling alternatives by way of FPI or institutional accounts with particular privileges.
Also Read: Stay Alert, Brokers: Sebi Highlights Risks Of Manipulation In Stock Markets
Modus Operandi
Sebi famous that fraudsters are attractive victims by way of on-line buying and selling programs, seminars, and mentorship packages within the inventory market, leveraging social media platforms akin to WhatsApp or Telegram, in addition to stay broadcasts.
Posing as staff or associates of Sebi-registered FPIs, they coax people into downloading functions that purportedly permit them to buy shares, subscribe to IPOs, and luxuriate in “institutional account benefits”– all with out the necessity for an official buying and selling or demat account, Sebi mentioned including that these operations usually use cell numbers registered beneath false names to orchestrate their schemes.
Under the rule, the FPI funding route is unavailable to resident Indians, with restricted exceptions as outlined within the Sebi’s FPI Regulations.
Further, there isn’t any provision for an “Institutional Account” in buying and selling, and direct entry to the equities market requires traders to have a buying and selling and demat account with a Sebi-registered dealer and depository participant respectively.
The regulator clarified that it has not granted any relaxations to FPIs relating to securities market investments by Indian traders.
Social Media Alert
Cautioning traders, Sebi has requested traders “to steer clear of any social media messages, WhatsApp groups, Telegram channels, or apps claiming to facilitate stock market access through FPIs or FIIs registered with Sebi. Such schemes are fraudulent and do not have Sebi’s endorsement.”
(With PTI inputs)
