Don't get hooked: The new Sebi letterhead scam targeting your savings

If a "government" letter asks for your bank details or a quick UPI transfer to "clear" your stocks, it's not a notice-it's a heist.

If you open your inbox to find an official-looking letter from the Securities and Exchange Board of India (SEBI) demanding a "tax payment" to release your investment funds—take a deep breath and hit pause. It’s likely a trap.

 

On February 23, 2026, Multi Commodity Exchange of India Ltd. (MCX) issued an investor advisory warning against fraudsters forging Securities and Exchange Board of India (SEBI) letterheads to send fake notices demanding Securities Transaction Tax (STT) payments.  

The Anatomy of the Scam

The con is sophisticated but follows a predictable script. Scammers send out fake notices claiming you owe Securities Transaction Tax (STT) under the Finance Act, 2004. They use the Sebi logo and formal legalese to intimidate you into believing your hard-earned money is "locked" until you pay up.

 

 

Here is the reality check: 

 SEBI is a regulatory body, not a tax collection agency. It never issues letters to individuals demanding direct payment of taxes like STT in exchange for releasing funds.

 

"We hereby caution the public at large to please be extremely vigilant and cautious and not respond to / communicate with / deal with such unlawful persons / parties who are issuing such fake / fabricated communications, i.e., letters, emails, website, phone calls, SMS, WhatsApp chats, Telegram channels, Facebook & Instagram posts or any other form of communication and demanding any kind of payment or information," said MCX in a statement. 

 

Red flags to watch out for:

Fraudsters aren't just sticking to emails anymore. They are sliding into DMs and popping up in your feed. Be extremely wary of "SEBI" communication via:

 

Social Media: Telegram channels, WhatsApp chats, and Instagram or Facebook posts.

 

Direct Tech: Unsolicited SMS or phone calls.

 

Websites: Fake portals designed to look like the official SEBI interface.

 

How to Protect Your Portfolio

Verify, Don't Comply: If you receive a demand for money, check the official SEBI or MCX grievance portals first.

 

Know the Role: Remember that STT is typically deducted by your broker or the exchange during a transaction—not collected via a random letter from the regulator.

 

Report It: Don’t just delete the message. Report the incident through the SEBI SCORES platform or the MCX grievance redressal mechanism.