SEBI Chairman Says One Of Biggest Concerns About First-Time Retail Investors Is Rise In Investment Frauds

One of the biggest concerns for the Securities and Exchange Board of India is the rise in investment frauds targeting first-time retail investors, SEBI Chairman Tuhin Kanta Pandey said while speaking on SEBI's challenges.

Pandey said many of these cases are not actually investment frauds, as the money never enters the securities market. However, victims are made to believe that they are investing in the securities market.

Fake Apps, Individuals Used To Target Investors

Speaking to ANI, Pandey said that these frauds are often carried out through fake apps and fake individuals. The money is then transferred through mule accounts, making it difficult for victims to recover their funds.

By the time investors realise what has happened and approach the cyber police, it is often too late, he said.

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SEBI Urges Investors To Verify Entities

Pandey said the first step for investors should be to verify whether the entity they are dealing with is regulated. Investors should also understand the channel through which they are being approached.

He also said that SEBI has developed tools to help investors verify such entities and channels. One such tool is available on the Google Play Store itself; it is known as 'SEBI Check', which investors can use to verify the entities before getting into any monetary transactions.

However, Pandey pointed out that the real challenge now is to increase awareness about these tools and ensure that the information reaches the public.

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