Mumbai, February 27: The Securities and Exchange Board of India (SEBI) has issued a critical warning to investors regarding the rise of scams involving fake Securities Transaction Tax (STT) notices and fraudulent account handling services.
SEBI has reported that scammers are sending counterfeit notices demanding payment for outstanding STT. These notices are crafted using fake letterheads, logos, and seals, falsely claiming authority under the SEBI Act of 1992.
In a separate statement, SEBI cautioned investors about so-called “PMS service providers” or “expert fund managers” who promise profits without risk in demat or trading accounts.
According to the regulator, these individuals lure investors by showcasing trades made in the names of other investors to claim substantial profits.
SEBI clarified that STT is automatically collected by brokers at the time of each trade, as stipulated in the Finance Act of 2004. SEBI does not issue any demand notices regarding STT.
Investors are advised to verify any messages or notices claiming to be from SEBI. The official SEBI email address ends with @sebi.gov.in, and all enforcement actions are published on its official website. Payments related to orders, settlements, or recoveries should only be made through SEBI’s authorized payment gateways.
The regulator also noted that scammers are impersonating SEBI officials, using fake identities, letterheads, logos, and seals to contact individuals. The statement emphasized, “Scammers are posing as SEBI officials and sending messages using counterfeit materials.”
Investors are encouraged to transact only with SEBI-registered intermediaries and to use authorized and genuine apps for trading. They should verify the registration status of any institution on SEBI’s official website.
Recently, SEBI launched a new feature called ‘SEBI Check,’ allowing investors to verify the authenticity of a SEBI-registered intermediary’s UPI ID or bank account by scanning a QR code or entering bank details.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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