In a bid to fight back against growing financial fraud in India’s capital markets, the Securities and Exchange Board of India (SEBI) has launched a joint campaign titled “SEBI vs Scam.” The campaign is in collaboration with key market infrastructure institutions (MIIs), including the NSE, BSE, CDSL, NSDL, MCX, MSEI, NCDEX, and mutual fund body AMFI.
The initiative aims to bolster investor protection, raise awareness about frauds and scams, and educate the public on identifying red flags within the securities market.
Combatting Modern Financial Fraud
The campaign, according to SEBI, is a response to a surge in financial misinformation—especially via social media and so-called “finfluencers.” These unregistered advisors have been offering investment tips, often luring vulnerable investors with fake promises and schemes.
SEBI warned about common frauds such as:
- Fake trading apps
- Impersonation by deepfakes
- Illegal ‘dabba’ and ‘opinion’ trading
- Paid courses with guaranteed returns
- Unregistered investment advice through social media
SEBI hopes the campaign will empower investors to make well-informed decisions and steer clear of misleading financial advice.
A Push for Safer Investing
A key focus area of the campaign is to educate investors about red flags, safe investing practices, and available redressal mechanisms. It encourages verification of advisors, understanding risk, and relying on registered professionals rather than informal online figures.
SEBI has also launched CeFCoM (Centralized Fee Collection Mechanism), an optional system allowing investors to pay only registered Investment Advisers (IAs) and Research Analysts (RAs) through a transparent digital platform, ensuring safer financial relationships.
This system is designed to distinguish genuine professionals from imposters masquerading as experts.
Warning Letters, Enforcement, and Social Outreach
SEBI has recently issued warning letters to several unregistered investment advisors for violating securities laws. The regulator has made it clear that failure to comply with the SEBI Act would invite enforcement action.
To maximize reach, SEBI is encouraging citizens to follow updates on its official X handle (@SEBI_India) and those of partner institutions. The hashtag #SEBIvsSCAM is being promoted to spread awareness across digital platforms.
With illegal “dabba trading” and fraudulent schemes on the rise, SEBI’s proactive campaign signals a firm stance against manipulation and a renewed push for investor education and digital vigilance.