SEBI, through Press Release No. 14/2026 dated February 26, 2026, cautioned investors against stock market scams involving so-called “account handling” services. Certain persons are offering to manage investors’ demat and trading accounts, portraying themselves as experts, PMS providers, or fund managers promising risk-free profits. These fraudsters typically demand a minimum capital commitment and claim a percentage share of profits, while showcasing purported successful trades of other investors. They require investors to share trading account credentials and execute trades directly in those accounts. Profits or losses are credited or debited to the investor’s account, but losses are not shared by the fraudsters. SEBI clarified that such account handlers are not registered with the regulator and do not fall under its purview. Investors have been advised not to share account credentials and to transact only through SEBI-registered intermediaries and authentic trading applications after verifying registration status.
Securities and Exchange Board of India
PR No. 14/2026
Caution to Investors on Stock Market Scams through Account Handling Services
It has come to the notice of SEBI that certain persons are offering ‘account handling’ services to help investors invest in securities market (hereafter referred to as ‘account handlers/ fraudsters’).
Investors are being made aware that these account handlers usually portray themselves as experts in account handling services, PMS service providers or expert fund managers who claim to help investors to make risk free profits in their demat/ trading account. While they specify the minimum capital requirement, which has to be arranged by an investor, they charge x% as a share from the investor’s profit. They exploit investors by showcasing trades done by them for other investors in which they claim to have generated substantial profits.
These fraudsters require investors to share their trading account credentials with them and key in trades by operating these accounts. The profits/ losses thus incurred, are directly credited/ debited to/from the investor’s account. The account holder is expected to share x% of profit so earned, if any. The loss incurred is not shared by the fraudster.
In view of the above, investors are advised to not trust claims of such account handlers/ fraudsters and refrain from sharing their account credentials with anyone. These account handlers/ fraudsters are not registered by SEBI and do not fall under the purview of SEBI.
Investors are advised to deal with only SEBI registered intermediaries and through authentic trading apps. Investors are advised to verify the status of registration of entities with SEBI at https://www.sebi.gov.in/intermediaries.html before investing and to carry out transactions only through authentic trading apps of SEBI registered intermediaries at https://investor.sebi.gov.in/Investor-support.html.
SEBI is issuing this Press Release to caution investors about the frauds and scams being carried out by unregulated entities and the manner in which they can protect themselves while carrying out transactions in the securities market by dealing with SEBI registered intermediaries.
Mumbai
February 26, 2026
