SEBI issued Advisory Against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPIs
The Securities and Exchange Board of India (SEBI) on February 26, 2023, issued SEBI Issues Advisory Against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPIs
The following has been stated-
FPI investment route is unavailable to resident Indians, with limited exceptions as outlined in the SEBI (Foreign Portfolio Investors) Regulations, 2019. There is no provision for an "Institutional Account" in trading, and direct access to the equities market requires investors to have a trading and Demat account with a SEBI-registered broker/trading member and DP respectively. SEBI has not granted any relaxations to FPIs regarding securities market investments by Indian investors.
SEBI urges investors to exercise caution and to steer clear of any social media messages, WhatsApp groups, Telegram channels, or apps claiming to facilitate stock market access through FPIs or FIIs registered with SEBI. Such schemes are fraudulent and do not have SEBI's endorsement.
[Notification No. 04/2024]
