The Securities and Exchange Board of India (SEBI) issued an advisory warning investors to be cautious of social media messages, WhatsApp groups, Telegram channels and apps that claim to provide stock market access to Indian residents through Foreign Portfolio Investors (FPIs) or Foreign Institutional Investors (FIIs). SEBI said these schemes are fraudulent and do not have its endorsement. SEBI highlighted common pitches used to lure investors, including “institutional trading accounts”, IPOs at discounted prices, guaranteed IPO allotments, participation in the anchor book, and block trades at discounted prices. It also reminded investors that the FPI investment route is not available to resident Indians, subject to limited exceptions under the SEBI (Foreign Portfolio Investors) Regulations, 2019, and urged investors to verify entity registration on SEBI’s website and transact only through authentic trading apps of SEBI-registered intermediaries.
Securities & Exchange Board of India 2025-08-22
Securities and Exchange Board of India warns investors about fraudulent trading schemes falsely offering market access via FPIs and FIIs
The Securities and Exchange Board of India (SEBI) warned investors about fraudulent schemes on social media and messaging platforms claiming stock market access via Foreign Portfolio Investors (FPIs) or Foreign Institutional Investors (FIIs). SEBI emphasized these schemes are not endorsed by the authority and reminded investors that the FPI route is generally unavailable to resident Indians. Investors are urged to verify entity registration on SEBI’s website and use only SEBI-registered intermediaries' trading apps.