Top News

As digital platforms democratize access to India’s booming securities market, Sebi Chairman Tuhin Kanta Pandey on Monday issued a stark warning: Fraudsters are weaponising technology to lure unsuspecting investors with impossible promises of “guaranteed returns”. Speaking at the launch of the World Investor Week 2025 on the theme “Prevention of Frauds and Scams and Basics of Investing”, Pandey stressed that while markets offer opportunities for growth, they are inherently fraught with risk—no institution can guarantee assured returns without violating the core principles of transparency and honesty.

The week-long global campaign led by IOSCO, organized by SEBI, aims to educate investors amid growing cyber threats such as spam messages on apps, unregulated “finfluencers” and fake trading portals. Pandey highlighted the vulnerabilities highlighted by SEBI’s Comprehensive Investor Survey 2025, which surveyed over 90,000 households across 400 cities and 1,000 villages in partnership with AMFI, NSE, BSE, NSDL and CDSL. Key revelations include: Only 36% of investors demonstrate moderate to high market knowledge, leaving 64% prone to manipulation due to information gaps. Despite 63% of households – or 213 million – recognizing at least one securities product, actual participation lags at 9.5%, equivalent to 32 million households. Rural areas have fared better with participation at 6% compared to 15% in urban areas, with Delhi (20.7%) and Gujarat (15.4%) leading the way.

“This knowledge gap puts investors at risk; our markets are engines of national growth, but they require vigilance,” he said. Barriers such as perceived complexity (74%), fear of loss (73%), and lack of trust (51%) discourage non-investors, although 22% of those “willing” plan to invest within a year, encouraged by digital tools and regional literacy programs.

To combat scams, SEBI is introducing innovations such as valid UPI handles for secure payments, ‘SEBI Check’ verification tool, and SCORES 2.0 for quick complaint resolution—all of which achieve 90% user satisfaction. Regional offices located in state capitals will increase reach, while campaigns like ‘SEBI vs Scam’ and Artha Yatra will target underserved areas in local languages.

At a media briefing, Pandey elaborated on SEBI’s crackdown on rogue influencers: Platforms like Google, Meta, X and Telegram were shut down as a result of the investigation into unregistered entities, and quarterly data showed a decline in violations. He also cautioned against speculative F&O trading, where misunderstood risks lead to huge retail losses. He advocated long-term, diversified strategies rather than “illusive quick gains.”

As India’s investor base grows, Pandey’s call to “verify, don’t trust blindly” is also gaining ground. Education has been positioned as the last bulwark against fraud in this high-stakes ecosystem.