Sebi Chairman Tightens Grip on Pre-Investment Scams Amid Rising Retail Investors

The Securities and Exchange Board of India (Sebi) is stepping up its efforts to tackle rising pre-investment scams amid a surge in retail investors, according to Chairman Tuhin Kanta Pandey. The regulator is using technology-driven enforcement to curb fraudulent activity that siphons funds away from potential investors before they engage with legal intermediaries.

Pandey highlighted the importance of investor education, stressing the need for awareness to evolve into informed action. Many new investors are being misled by scams involving fake trading applications and enticing WhatsApp groups, which divert funds to fraudsters' accounts.

Sebi's ongoing initiatives include utilizing AI and data tools to monitor market misconduct and disseminating information on verified investment platforms. Pandey also emphasized the Sebi Check tool and proposed long-term investment strategies to safeguard investor interests as India's retail base expands.