look news india
Mumbai: Claims of offering trading schemes through FPI or Foreign Institutional Investor (FII) sub-accounts or special privileged institutional accounts are false, fraudulent and illegal, the Securities and Exchange Board of India (SEBI) has clarified.
SEBI has advised investors to be cautious after receiving several complaints regarding Indians joining fraudulent trading platforms claiming to be linked to SEBI-registered foreign portfolio investors (FPIs). Such scams have been reported to prey on people through online trading courses, seminars and mentorship programs in the stock market and social media platforms like WhatsApp and Telegram as well as live broadcasts.
These types of scams have been reported, involving people claiming to be associated with SEBI-registered FPIs or their employees, who are luring people into buying shares, subscribing to IPOs and opening institutional accounts without the need to open an official trading or demat account. With the benefits of.
These scams have also been found to involve using mobile numbers registered in the false names of others for such activities.
SEBI has clarified to investors that the FPI investment route is not available to residents of India with certain exceptions as per the SEBI (Foreign Portfolio Investors) Regulations, 2019. There is no provision for an institutional account and investors cannot directly engage in the equity market without a SEBI registered broker or trading member as well as a demat account with a trading and DP. SEBI has not given any relaxation to FPIs with respect to investment in securities market by Indian investors.
SEBI has urged investors to be wary of such fraudulent claims made through social media messages, WhatsApp groups, Telegram channels or even apps that allow investors to trade in the stock market through FPIs or FIIs registered with SEBI. Claim to invest in.