Securities and Exchange Board of India Chairman Tuhin Kanta Pandey on Wednesday said that the rapid growth in India's securities market and the surge in retail participation must be matched with stronger investor protection measures, warning that fake apps pose a serious and growing threat to investors.
Speaking about the changing landscape of India's capital markets, the SEBI Chairman said that India's securities market is witnessing wider participation than ever before, making investor safety and trust more important than ever.
He warned that fake apps are a “serious threat” and can cause irreversible harm, noting that the damage is not limited to financial losses alone but also includes loss of investor confidence in the financial system.
To address the issue, SEBI has introduced a system under which apps of SEBI-registered intermediaries will carry a verified badge on the Google Play Store, helping investors identify legitimate platforms and avoid fraudulent applications. The Chairman also acknowledged the team at Google for supporting this initiative, calling it an important step towards improving investor safety in the digital ecosystem.
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The SEBI Chairman also said that the verified badge system should be adopted by other platforms beyond the Google Play Store to further strengthen investor protection across digital channels.
He noted that SEBI is working closely with various stakeholders to curb risks arising from fake platforms and digital frauds. The regulator is also working with stakeholders on an integrated investor outreach programme to improve awareness and educate investors about safe investing practices.
Emphasising the role of technology, he said that safer technology builds trust in financial markets and urged investors to transact only through trusted and verified channels.
“I urge every investor to proceed only through trusted channels,” the SEBI Chairman said, stressing that investor protection remains a key priority as India's markets continue to grow rapidly.
He added that what India has built in terms of investor protection and verification mechanisms is likely to be followed by the rest of the world, highlighting India's growing leadership in market regulation and investor protection frameworks.
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