Context:
SEBI Chairman Tuhin Kanta Pandey has urged state governments to collaborate in tackling rising cyber frauds in the securities market, particularly those exploiting social media platforms to mislead investors.
Key Highlights:
- Modus Operandi:
- Fraudsters impersonate registered intermediaries or market experts.
- They create fake profiles, run WhatsApp/Telegram groups as “educational” platforms, and give investment advice.
- SEBI’s Initiatives:
- Proposed state-level working group with police and SEBI officials.
- Offer to train state officials to fight cyber fraud.
- Increased monitoring of unlawful content on social media in collaboration with platforms.
- Action against unregistered investment advisors, research analysts, and “finfluencers”.
- Directives to stock exchanges to curb unauthorised schemes and practices.
Additional Protective Measures
- Verified Social Media Advertising
- Intermediaries are now required to register on social platforms using verified email and mobile numbers, and platforms must verify their credentials before allowing advertising.
- Verified UPI Mechanism
- Launching a new feature, SEBI enables investors to confirm if funds are being transferred to genuine SEBI-registered entities, reducing the risk of falling for impersonation scams.
- SEBIvsSCAM Awareness Campaign
- In collaboration with NSE, SEBI launched the #SEBIvsSCAM initiative, a multimedia drive to educate investors about fraud methods—including spoofed apps, fake advisory content, and phishing attempts.
