The Securities and Exchange Board of India (SEBI) will take a tough approach to malpractice involving WhatsApp and Telegram investment groups, Chairman Tuhin Kanta Pandey said on Wednesday, as the regulator steps up efforts to help investors distinguish genuine market participants from scammers.
“We have to actually stop the malpractices with a heavy hand,” Pandey said during a panel discussion at NDTV Profit Ignite in Mumbai on Wednesday
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite
He warned that scammers use messaging groups to create the impression that their investment recommendations are credible, including by making members appear to endorse claims of exceptional or guaranteed returns.
“In that fake world, people are believing and losing tons of money,” Pandey said.
READ | Gold ETF Fund-Of-Funds Investment Curbs Are Temporary, SEBI Chair Pandey Says
Stepping Up Action
Pandey said SEBI was working to tackle misleading online investment content and had escalated more than 2.2 lakh instances to social media platforms for takedown. He said the regulator acts on evidence of wrongdoing, using filters and human judgement.
SEBI has also worked with Google to introduce a verified label for trading apps on the Google Play Store in India, Pandey said. The label is intended to help users identify apps associated with regulated securities-market entities.
The chairman urged investors to check the legitimacy of investment offers instead of relying on recommendations circulated in messaging groups.
READ | SEBI Chief: Direct MF Plans Default From Nov 1; IPO Rules, SME Framework Under Review
Pandey also highlighted SEBI Check, a tool that allows investors to check whether a bank account, UPI ID or QR code is associated with a regulated securities-market recipient.
He said investors could use the tool to check payment details before transferring money. For UPI IDs, he said the absence of the word “VALID” in the result indicates that the address is not a valid UPI destination for a securities-market recipient.
The regulator's challenge, Pandey said, is to make investors aware of these checks and encourage them to use the tools before sending money.
He linked the effort to SEBI's Project Jagrook investor-education campaign, which aims to make investing information easier to understand and reach people across languages.
READ | SEBI Aims To Cut Foreign Investor Onboarding To As Little As Five Business Days
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.