Mumbai, February 27 (IANS). Capital market regulator SEBI i.e. Securities and Exchange Board of India (SEBI) has warned investors about the increasing fraud in the name of fake Securities Transaction Tax (STT) notices and ‘account handling’ services.
SEBI said that fraudsters are sending fake notices demanding payment of outstanding STT. These notices are sent using fake letterhead, logo and seal of SEBI and falsely claim to have authority under the SEBI Act, 1992.
In another statement, SEBI has also asked to be cautious of those so-called ‘PMS service providers’ or ‘expert fund managers’ who claim to provide risk-free profits in demat or trading accounts.
According to the regulator, these people cheat people by claiming huge profits by showing trades done in the name of other investors.
SEBI clarified that STT is automatically collected by the broker at the time of every trade, as per the provision in the Finance Act 2004. SEBI does not issue any demand notice regarding STT.
Investors have been asked to first check any message or notice coming in the name of SEBI. SEBI’s official email ID ends only with @sebi.gov.in, and information about all enforcement actions is published on its official website. Make online payments related to orders, settlements or collections only through SEBI authorized payment gateways.
SEBI also said that fraudsters are contacting people by creating fake identities of SEBI officials, various offices and email IDs. “The fraudsters are posing as SEBI officials and sending messages using letterheads, logos and seals,” the statement said.
Investors are advised to transact only with SEBI-registered intermediaries and use only authorized and genuine apps for trading. Check the registration status of any institution on the official website of SEBI.
Recently SEBI has launched a new facility called ‘SEBI Check’, under which investors can check whether the UPI ID or bank account of a SEBI-registered intermediary is genuine by scanning the QR code or entering bank details.
–IANS
DBP/
