India’s capital market regulator, the Securities and Exchange Board of India (SEBI), has issued a strong caution to investors against a new wave of fraudulent schemes exploiting its name and authority. SEBI revealed that fraudsters are impersonating SEBI officials and sending fabricated letters, emails, and notices to investors, demanding payments under false pretences.
According to SEBI, the perpetrators are using forged letterheads, fake seals, and even fabricated office details to lend credibility to their messages. In some cases, social media platforms are also being misused, with fraudsters circulating notices that appear to be authentic. These communications often pressurize investors to deposit money into specific bank accounts under the guise of compliance, penalty, or regulatory settlement fees.
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Fraudsters Exploiting Regulatory Trust
Investigations by SEBI indicate that such fraudulent attempts are carefully designed to exploit the regulator’s credibility. In certain instances, forged certificates and letters were sent to reassure investors that their money was being collected under official authority. One case reportedly involved a fabricated letter, allegedly signed by a SEBI officer, instructing an investor to deposit money into a bank account that turned out to be fraudulent.
The regulator has clarified that it never demands payments directly through such letters or emails. All official communications and compliance requirements are routed exclusively through SEBI’s official website and designated portals. The misuse of official seals and signatures has been identified as a critical element of these scams, which are increasingly targeting unsuspecting retail investors.
Investors Urged to Verify Before Acting
In its statement, SEBI stressed that investors should not respond hastily to suspicious emails or letters claiming to be from the regulator. Instead, they should verify all communications directly through SEBI’s website or contact its official helpdesk. The regulator also emphasized that payment requests, if legitimate, are always published on its official portal, along with detailed instructions and contact points.
By drawing attention to these fraudulent practices, SEBI aims to protect investors from losing their hard-earned savings to scams that are becoming increasingly sophisticated. Experts suggest that this advisory underlines a broader challenge, ensuring investor education keeps pace with evolving methods of financial fraud.