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 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.
Sebi 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 account 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 this month. This follows several complaints regarding such activities and entities.
The market regulator had earlier said that it has observed a rising trend of ‘unscrupulous entities’ and online platforms falsely claiming to be registered with Sebi.
First Published: Feb 26 2024 | 7:09 PM IST