Sebi Warns Against Fraudulent Notices and Fake Account Handlers

Sebi, the capital markets regulator, has issued an alert regarding fake notices misusing its name to demand payments for Securities Transaction Tax (STT). The fraudulent notices, mimicking Sebi's letterhead, request investors to fulfill alleged STT obligations under the Finance Act, 2004. However, Sebi clarified these notices are not legitimate.

In its statement, Sebi reiterated that STT, a tax collected by brokers, applies to securities transactions on stock exchanges. Importantly, the regulator stated it neither issues notices for STT payments nor collaborates with the Reserve Bank of India on such matters. Investors are advised to verify notices purportedly from Sebi to avoid financial scams.

In related news, Sebi also cautioned against unregistered entities posing as account handlers, offering risk-free profits in the stock market. These fraudsters demand access to trading account credentials while misleadingly promising returns. Sebi urges investors to engage only with registered entities and verify credentials beforehand to prevent exploitative schemes.