Sebi cautions against social media groups with 'FPI' links

Mumbai: The Securities and Exchange Board of India (Sebi) has urged investors to be cautious of social media messages and groups on WhatsApp, Telegram, and other apps that claim to have linkages to foreign portfolio investors (FPIs). The capital market regulator said in a release on Monday that such schemes are fraudulent and not endorsed by it.

Sebi said that it received several complaints about fraudulent trading platforms that claimed affiliation with FPIs and offered trading opportunities through foreign investors' accounts with special privileges. "There is no 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 broker/trading member and DP, respectively."

The fraudulent operations are done using mobile numbers registered under false names and involve attracting victims through online trading courses, seminars, and mentorship programmes in the stock market through social media platforms and live broadcasts, said the regulator.