Mumbai, February 27: The Securities and Exchange Board of India (SEBI) has issued a critical alert to investors regarding the rise of fraudulent Securities Transaction Tax (STT) notices and scams related to so-called ‘account handling’ services.
SEBI cautioned that scammers are sending fake notices demanding outstanding STT payments. These notices are crafted using counterfeit SEBI letterheads, logos, and seals, falsely claiming authority under the SEBI Act of 1992.
In another advisory, SEBI warned investors to be wary of purported ‘PMS service providers’ or ‘expert fund managers’ who promise risk-free profits in demat or trading accounts. According to the regulator, these individuals showcase trades made in the names of other investors to falsely claim significant profits, luring people into their schemes.
SEBI clarified that STT is automatically collected by brokers at the time of each trade, as stipulated in the Finance Act of 2004. Importantly, SEBI does not issue demand notices for STT.
Investors are urged to verify any messages or notices claiming to be 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 highlighted that scammers impersonate SEBI officials, using fake identities, letterheads, logos, and seals to contact individuals. The statement emphasized, “Scammers pose as SEBI officials, sending messages with counterfeit documentation.”
Investors are advised to transact only with SEBI-registered intermediaries and to use authorized and genuine apps for trading. The registration status of any institution can be verified 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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- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several 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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