‘Don’t invest just because everyone else is,’ says Sebi chief; flags investor frauds
Sebi chairman Tuhin Kanta Pandey has warned retail investors against falling for investment frauds that often operate outside the regulated securities market. He emphasized the importance of verifying entities and understanding financial products before investing.
Why it matters
As retail participation in stock markets grows, protecting inexperienced investors from cyber-fraud and mule account schemes is a major regulatory priority.
Rising investment frauds are among the biggest challenges facing the Securities and Exchange Board of India (Sebi) as more retail investors enter the markets, Sebi chairman Tuhin Kanta Pandey said on Monday, while giving some thumb rules for investing.Speaking at the launch of Project Jagruk, an investor awareness campaign, in Chandigarh, Pandey said many of these frauds do not involve the securities market at all, with victims being made to believe that they are investing while their money is transferred through mule accounts."One of our biggest concerns regarding first-time retail investors is the increase in investment frauds. In many cases, these are actually non-investment frauds.
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