Supreme Court: Right to a Speedy Trial Cannot Override NDPS Act Bail Conditions  ||  SC: Relatives Cannot be Implicated in Bigamy Solely Based on Knowledge of a Second Marriage  ||  Supreme Court: Service Inam Land Attached to a Mosque Constitutes Waqf Property and is Inalienable  ||  Supreme Court: Court Cannot Order an Accused to Surrender While Denying Anticipatory Bail  ||  Supreme Court: Landlord’s Legal Heirs May Amend an Eviction Suit to Include Bona Fide Need  ||  Supreme Court: Unsuccessful Party Can Invoke Section 9 of the Arbitration Act Even After an Award  ||  Karnataka High Court: Accused Cannot be Required to Share Live GPS Location as a Condition of Bail  ||  Guj HC: Plaintiff in Specific Performance Suit Must Prove Readiness &Willingness to Perform Contract  ||  Madras HC: Transgenders are Children of God, Tragedy Lies in Society’s Blindness, Not Their Birth  ||  Del HC: False Educational Qualification Declaration does not amount to Corrupt Practice U/S 123(4)    

SEBI Issues Advisory Against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPIs- (Securities and Exchange Board of India) (26 Feb 2024)

MANU/SPRL/0003/2024

Capital Market

The Securities and Exchange Board of India (SEBI) has been receiving a number of complaints regarding fraudulent trading platforms which falsely claim or suggest affiliation with SEBI-registered Foreign Portfolio Investors (FPIs) and claiming to offer trading opportunities through FPI or Foreign Institutional Investor (FII) Sub-accounts or Institutional Accounts with special privileges.

Fraudulent Practices Identified

Fraudsters are enticing victims through online trading courses, seminars, and mentorship programs in the stock market, leveraging social media platforms like WhatsApp or Telegram, as well as live broadcasts. Posing as employees or affiliates of SEBI-registered FPIs, they coax individuals into downloading applications that purportedly allow them to purchase shares, subscribe to IPOs, and enjoy "Institutional account benefits"-all without the need for an official trading or Demat account. These operations often use mobile numbers registered under false names to orchestrate their schemes.

Clarification for Investors

It is important for the public to understand that the FPI investment route is unavailable to resident Indians, with limited exceptions as outlined in the SEBI (Foreign Portfolio Investors) Regulations, 2019. There is no provision for an "Institutional Account" in trading, and direct access to the equities market requires investors to have a trading and Demat account with a SEBI-registered broker/trading member and DP respectively. SEBI has not granted any relaxations to FPIs regarding securities market investments by Indian investors.

Investor Advisory

SEBI urges investors to exercise caution and to steer clear of any social media messages, WhatsApp groups, Telegram channels, or apps claiming to facilitate stock market access through FPIs or FIIs registered with SEBI. Such schemes are fraudulent and do not have SEBI's endorsement.

Tags : ADVISORY   TRADING SCHEMES   FRAUDS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved