Mumbai, February 27: The Securities and Exchange Board of India (SEBI) has issued a warning to investors regarding the rise of scams involving fake Securities Transaction Tax (STT) notices and misleading ‘account handling’ services.
SEBI reported that fraudsters are sending counterfeit notices demanding payment for outstanding STT. These notices are created using fake letterheads, logos, and seals, falsely claiming authority under the SEBI Act of 1992.
In another advisory, SEBI cautioned against so-called ‘PMS service providers’ or ‘expert fund managers’ who promise risk-free profits 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 demand notices related to STT.
Investors are urged to verify any messages or notices purportedly from SEBI. Official communications from SEBI will only come from email addresses ending in @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, “Fraudsters are sending messages while posing as SEBI officials.”
Investors are advised 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 scan QR codes or enter bank details to verify the authenticity of a SEBI-registered intermediary’s UPI ID or bank account.
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