Sebi asks mutual funds to take action against fake Telegram groups

MFs told to issue press release and file FIR against misleading groups

The Securities and Exchange Board of India (Sebi) has asked mutual funds to regularly monitor social media platforms and take action against entities misusing names of mutual funds to lure investors.

"Mutual funds shall be vigilant and regularly monitor social media to identify entities or groups which camouflage themselves as registered mutual funds or misuse the names of mutual funds to lure the investors," Sebi said in a communication to industry body Association of Mutual Funds in India (Amfi) on Wednesday.

"Mutual Funds should promptly take appropriate actions including issuing a press release/public notice, filing FIR, etc," the letter added.

The directive came after a news article showed that Telegram was rife with dubious groups masquerading as fund houses. Among the most popular ones are Paytm Doubling Mutual Funds, Paytm Doubling Funds Mutual, Tata Mutual Fund Investment, Bitcoin (Mutual Funds), etc. These accounts have a user base of 50,000 to 90,000 each, according to the Sebi letter.