Sebi cautions investors against fraudsters impersonating the regulator

Sebi warns investors about fraudsters using its logo and letterhead to impersonate officials, asking for payments related to compliance services and penalties

The Securities and Exchange Board of India (Sebi) on Friday cautioned investors against fraudsters impersonating Sebi officials and using the regulator’s letterhead, logo, and seal in fraudulent communications.

 

“It has come to our notice that fraudsters are sending notices through social media platforms and requesting payments for compliance services or penalties to prevent action by Sebi,” said the regulator, urging investors to remain vigilant.

 

Some fraudsters are also claiming that vendor or merchant accounts are under Sebi supervision by forging signatures of officials and letterheads, making investors believe that the said accounts are genuine. This has led to many losing their money to these fraudulent accounts.

 

Sebi advised investors to verify any enforcement action by checking its website and to scrutinise the domain name of any such emails.