The Securities and Exchange Board of India (SEBI) has issued an advisory warning Indian investors about fraudulent schemes promoted through social media platforms, messaging apps like WhatsApp and Telegram, and mobile applications. These scams falsely claim to provide special access to the stock market through Foreign Portfolio Investors (FPIs) or Foreign Institutional Investors (FIIs). The advisory highlights that these fraudulent schemes often promise benefits such as institutional trading accounts, discounted IPOs with guaranteed allotment, and exclusive participation in anchor and block deals. SEBI clarifies that the FPI investment route is generally not available to resident Indians, except for very limited exceptions under its regulations. To protect themselves, investors are advised to always verify the registration of any entity on SEBI’s official website and to conduct all trading activities exclusively through authentic trading apps provided by SEBI-registered intermediaries.
Securities and Exchange Board of India
PR No.53/2025
Advisory Against investment in Fraudulent Trading Schemes claiming to be offered to Indian residents by FPIs
Securities and Exchange Board of India (SEBI) advises investors to exercise caution when dealing with social media messages, WhatsApp groups, Telegram channels, or apps claiming to offer stock market access through Foreign Portfolio Investors (FPIs) or Foreign Institutional Investors (FIIs).
These schemes are fraudulent and do not have SEBI’s endorsement. Be wary of claims such as:
- Institutional trading account
- IPOs at discounted price
- Guaranteed allotment in IPO
- Ability to participate in Anchor book
- Block Trade at discounted price
Remember, the FPI investment route is unavailable to resident Indians, with limited exceptions as outlined in the SEBI (Foreign Portfolio Investors) Regulations, 2019. Always verify the registration status of entities on SEBI’s website before investing and use only authentic trading apps from SEBI-registered intermediaries.
Stay Informed:
- Visit SEBI’s investor website for resource material and Do’s and Don’ts of investing.
- Verify entity registration on SEBI’s website at
https://www.sebi.gov.in/intermediaries.html - Carry out transactions only through authentic trading apps of SEBI registered intermediaries at
Mumbai
August 22, 2025
