SEBI chief urges investors to verify investment advice, warns against online scams
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SEBI Chairman Tuhin Kanta Pandey has urged investors to verify investment recommendations and payment details before transferring money, warning against fraudulent stock tips circulated through WhatsApp and Telegram groups.
Speaking at NDTV Profit Ignite in Mumbai on Wednesday, Pandey compared the care people take when buying everyday essentials such as vegetables with their approach to investing.
“How can you just put so much of your money on something completely fake?” he said, referring to investors who fall for fraudulent recommendations shared through messaging groups.
Pandey said scammers often create fake groups where members appear to endorse investment calls and promise exceptional or guaranteed returns.
“In that fake world, people are believing and losing tons of money,” he said.
The Securities and Exchange Board of India (SEBI) is providing tools to help investors verify market participants and payment details. Its SEBI Check facility allows users to check whether a bank account, UPI ID or QR code is associated with a regulated securities-market recipient. Pandey said the verification takes about 30 seconds.
He also highlighted verified labels for trading apps on India's Google Play Store, developed through SEBI's collaboration with Google. The labels are intended to help users identify apps associated with regulated entities.
Pandey said SEBI had escalated more than 2.2 lakh instances of misleading online content to social media platforms for takedown. The regulator uses automated filters and human judgement to identify problematic content and acts on evidence of wrongdoing.
SEBI is also using its Project Jagrook investor-awareness campaign to educate the public about investment fraud and encourage the use of verification tools.
Pandey warned investors against relying on the confidence or apparent consensus of people in online groups, urging them to verify the identity and legitimacy of recipients before transferring money.