The Securities and Exchange Board of India (SEBI) on February 13, 2024, cautions the public against dealing with unregistered entities.
The SEBI has observed a rising trend of unscrupulous entities and online platforms that falsely claim to be registered with SEBI as intermediaries. These entities often entice the general public by showcasing fake certificates purportedly issued by SEBI and promising or implying assured, high returns on investments.
The investors are advised to do the following:
i. Verify before investing: Before engaging with any investment service provider, investors are strongly advised to verify the entity's registration status on the SEBI website (www.sebi.gov.in) by following the below path → www.sebi.gov.in → Intermediaries/Market Infrastructure Institutions → Recognised Intermediaries.
ii. Beware of promises of high returns: Investors should be cautious of any entity that promises assured or exceptionally high returns. The principle of 'higher returns come with higher risks of losing your money altogether’ holds in the securities market.
iii. Verify enforcement action by SEBI: The details of any enforcement action taken by SEBI against any entity/ intermediary are available on the SEBI website on the following path → www.sebi.gov.in → Enforcement → Orders.
iv. Be well informed: SEBI encourages investors to empower themselves with knowledge about the securities market for a safer investment journey. Knowledge is your best defence against fraud. For comprehensive resources on understanding the basics of investing, recognizing the importance of dealing with registered intermediaries, and more.
[PR No. 02/2024]
