Sebi cautions against investment in fraudulent trading schemes

New Delhi: Markets regulator Sebi on Friday cautioned investors against fraudulent trading schemes being promoted through social media messages or mobile applications falsely claiming to provide stock market access through foreign portfolio investors (FPIs).

In its cautionary statement, Sebi warned that such schemes are illegal and not endorsed by the regulator.

The regulator asked investors to exercise caution when encountering messages on platforms like WhatsApp, Telegram, or other apps that claim to offer stock market access through FPIs or foreign institutional investors (FIIs).

Investors have been advised "to be wary of misleading claims such as institutional trading accounts, IPOs at discounted prices, guaranteed allotments in IPOs, opportunities to participate in anchor book and block trades at discounted rates".

The regulator reminded investors that the FPI investment route is not available to resident Indians, except in limited cases as permitted under the Sebi (Foreign Portfolio Investors) Regulations, 2019.

The regulator further advised investors to always verify the registration status of entities on Sebi's website and to use only authentic trading apps offered by Sebi-registered intermediaries.