The Securities and Exchange Board of India (SEBI) has issued a public caution advising investors to remain alert and vigilant against rising instances of impersonation scams. Fraudsters are increasingly misusing SEBI’s name, logo, and credentials to deceive the public and extract money under false pretenses.
Rising Trend of SEBI Impersonation
SEBI has observed numerous cases where individuals and entities are impersonating SEBI officials. These fraudsters are using fake email addresses, forged letterheads, and counterfeit certificates that mimic official SEBI documents. In some alarming instances, they have gone as far as fabricating SEBI seals and signatures to lend authenticity to their deception.
These impersonators often contact victims through social media platforms or fraudulent emails, pretending to be SEBI representatives. They falsely claim that the target is under regulatory scrutiny or has to comply with certain financial obligations, such as penalty payments or service charges. To add legitimacy to their demands, they provide fake bank account details, falsely portrayed as SEBI-certified merchant or vendor accounts.
Unfortunately, many unsuspecting investors, believing these communications to be genuine, end up transferring their hard-earned money into these fraudulent accounts.
Tactics Used by Fraudsters
- Sending fake notices on fabricated SEBI letterheads.
- Using counterfeit SEBI logos, seals, and signatures.
- Creating fake certificates to claim SEBI authorization of bank accounts.
- Contacting individuals via social media or emails to demand payments.
- Misrepresenting penalties or compliance fees under the guise of regulatory enforcement.
SEBI’s Advisory to the Public
To protect themselves, SEBI urges all investors and the general public to follow these precautions:
- Verify Enforcement Actions: All official enforcement actions are published on SEBI’s website under the path:
Home > Enforcement - Always verify the authenticity of any notice or order received.
- Any legitimate payment to SEBI must be made through its official portal