Image for representational functions solely.
| Photo Credit: REUTERS
Capital markets regulator Sebi on February 26 cautioned investors against fraudulent trading platforms, claiming to facilitate stock market access to Indians by means of Foreign Portfolio Investors (FPIs) route.
Sebi famous that fraudsters are attractive victims by means of on-line trading programs, seminars, and mentorship packages within the stock market, leveraging social media platforms equivalent to WhatsApp or Telegram, in addition to stay broadcasts.
Posing as staff or associates of Sebi-registered FPIs, they coax people into downloading purposes that purportedly permit them to buy shares, subscribe to IPOs, and revel in “institutional account benefits”— all with out the necessity for an official trading or demat account, Sebi mentioned including that these operations typically use cellular numbers registered beneath false names to orchestrate their schemes.
The cautionary assertion got here after Sebi acquired numerous complaints relating to fraudulent trading platforms, which falsely claimed affiliation with FPIs and claimed to supply trading alternatives by means of FPI or institutional accounts with particular privileges.
Under the rule, FPI funding route is unavailable to resident Indians, with restricted exceptions as outlined within the Sebi’s FPI Regulations.
Further, there is no such thing as a provision for an “Institutional Account” in trading, and direct access to the equities market requires investors to have a trading 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 investors.
Cautioning investors, Sebi has requested investors “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”.
