The Securities and Exchange Board of India (SEBI) cautioned investors about fraudulent notices demanding payment of securities transaction tax (STT). Fraudsters are misusing SEBI’s letterhead to send false notices to investors, falsely claiming pending STT dues under the Finance Act, 2004. SEBI clarified that it never sends such payment demands to investors and does not collaborate with the Reserve Bank of India for tax collection.
Scammers are impersonating SEBI officials, using their names, job titles, and fake email IDs resembling official addresses, to deceive investors into sending money. The National Stock Exchange also issued a similar warning after observing fake communications demanding STT payments using SEBI’s letterhead. Investors are advised to be cautious and avoid responding to messages purportedly from SEBI officials requesting money on the regulator’s behalf.
SEBI raised concerns about increasing scams related to “account handling” services, where individuals pose as trading experts, promising guaranteed profits. Investors are urged not to trust such claims and to refrain from sharing their trading account details. SEBI emphasized that these account handlers lack SEBI registration and authorization to offer investment or portfolio management services.
