Sebi to fight against investment fraud with technical tools, new offices

Mumbai: The Securities and Exchange Board of India (Sebi) intends to launch a multiple assault on investment fraud, which combines new technological precautions with a significant physical expansion across the country to protect a fast -growing base of retail investors. Sebi chairman Tuhin Kanta Pandey on Monday announced plans to introduce new digital instruments to fight online venditile and open offices in head of state and other major cities to fight online fraud and improve investor awareness. He spoke during the inauguration of the World Investor Week 2025 on the National Stock Exchange. Pandey also emphasized the great connection between market awareness and real participation in retail investors. A recent investor survey of SEBI commands of more than 90,000 households revealed that 63% of Indian households were aware of security products, but that only 9.5% actually invested. “This gap is a vulnerability that exposes our investors to risks and makes them susceptible to fraud,” Pandey said. The number of unique investors in India has swollen to about 134 million, but only 36% has a high or moderate market knowledge, according to Sebi’s survey. It created a fertile soil for fraudsters using digital instruments, unsolicited messages and financial influencers to promise ‘guaranteed returns’ – a concept that Pandey said stood against the nature of the markets. Responsible Investment – The ultimate Shield Pandey said Sebi actively identifies posts by unregistered finfluencers and flags it to platform providers such as Google and Meta for removal. Over the past 18 months alone, more than 100,000 such misleading posts have been marked, he said. Pandey also announced that Sebi will establish offices in head of state and other major cities to improve investor connection, monitor unregulated activities and collect market intelligence. The Sebi chief talked on the sidelines and cited cities such as Lucknow, Vijayawada, Bengaluru and Chandigarh as places for these new offices. From this month, Sebi has introduced a “validated UPI handle” mechanism. All payments to SEBI-registered intermediaries must now use an UPI ID with a special handle and a visual thumb icon, offering investors an immediate warning sign against fraudulent channels. A guided ‘Sebi Check’ instrument has been launched for investors to verify the payment channels of an intermediary. Responsible investment is the ultimate shield, Pandey said, and investors requested to use credible sources, question unrealistic promises and understand their own financial goals and risk tolerance. With 22% of non-investors expected to enter the market the following year, Sebi’s mission, according to Pandey, concluded to empower this new wave of retail investors with the knowledge to invest safely and with confidence.