SEBI Intensifies Tech-Driven Enforcement to Curb Pre-Investment Scams

Amid a sharp surge in retail investor participation, the Securities and Exchange Board of India (SEBI) has strengthened its surveillance and technology-driven enforcement framework to tackle rising pre-investment scams.

SEBI Chairman Tuhin Kanta Pandey highlighted growing instances where aspiring investors are defrauded even before engaging with SEBI-registered intermediaries.

What Are Pre-Investment Scams?

Pre-investment scams involve fraudsters:

• Luring investors through fake trading apps
• Operating misleading WhatsApp or Telegram groups
• Promising guaranteed or abnormally high returns
• Diverting funds into personal bank accounts

In many cases, funds are siphoned off before investors interact with regulated brokers or investment platforms.