Below the rule, the FPI funding route is unavailable to resident Indians, with restricted exceptions as outlined within the Sebi’s FPI Laws.(Consultant picture)
The regulator clarified that it has not granted any relaxations to FPIs relating to securities market investments by Indian buyers.
Capital markets regulator Sebi not too long ago cautioned buyers in opposition to fraudulent buying and selling platforms, claiming to facilitate inventory market entry to Indians via International Portfolio Traders (FPIs) route.
The cautionary assertion got here after Sebi obtained a number of complaints relating to fraudulent buying and selling platforms, which falsely claimed affiliation with FPIs and claimed to supply buying and selling alternatives via FPI or institutional accounts with particular privileges.
Additionally Learn: Keep Alert, Brokers: Sebi Highlights Dangers Of Manipulation In Inventory Markets
Modus Operandi
Sebi famous that fraudsters are engaging victims via on-line buying and selling programs, seminars, and mentorship applications within the inventory market, leveraging social media platforms resembling WhatsApp or Telegram, in addition to dwell broadcasts.
Posing as staff or associates of Sebi-registered FPIs, they coax people into downloading purposes that purportedly enable them to buy shares, subscribe to IPOs, and luxuriate in “institutional account advantages”– all with out the necessity for an official buying and selling or demat account, Sebi mentioned including that these operations typically use cell numbers registered below false names to orchestrate their schemes.
Below the rule, the FPI funding route is unavailable to resident Indians, with restricted exceptions as outlined within the Sebi’s FPI Laws.
Additional, there is no such thing as a provision for an “Institutional Account” in buying and selling, and direct entry to the equities market requires buyers to have a buying and selling and demat account with a Sebi-registered dealer and depository participant respectively.
The regulator clarified that it has not granted any relaxations to FPIs relating to securities market investments by Indian buyers.
Social Media Alert
Cautioning buyers, Sebi has requested buyers “to keep away from any social media messages, WhatsApp teams, Telegram channels, or apps claiming to facilitate inventory market entry via FPIs or FIIs registered with Sebi. Such schemes are fraudulent and should not have Sebi’s endorsement.”
(With PTI inputs)
