Mkt regulator Sebi warns investors against fraudsters claiming to be FPIs


The Securities and Exchange Board of India (Sebi) has warned investors of fraudsters claiming to be trading platforms affiliated with foreign portfolio investors (FPIs) and has urged them to be cautious of social media messages claiming to give institutional privileges.

“Fraudsters are enticing victims through online trading courses, seminars, and mentorship programs in the stock market, leveraging social media platforms like WhatsApp or Telegram, as well as live broadcasts,” said Sebi.

The markets regulator said that the scamsters posing as employees of registered FPIs coax individuals into downloading apps that allow them to deal in the securities market with institutional benefits without a demat or an official trading account.

“These operations often use mobile numbers registered under false names to orchestrate their schemes,” added Sebi.

This is the second caution against fraudsters in February following several complaints regarding such fraudulent activities and entities.

The regulator had earlier said it has observed a rising trend of ‘unscrupulous entities’ and online platforms falsely claiming to be registered with them. 

First Published: Feb 26 2024 | 7:09 PM IST


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