MUMBAI: The Securities and Exchange Board (Sebi) has issued an advisory to investors urging them 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).
In a press note, Sebi said Friday, "These schemes are fraudulent and do not have SEBI's endorsement. Be wary of claims such as institutional trading accounts, IPOs at discounted prices, guaranteed IPO allotments, ability to participate in anchor books, block trade at discounted price."
The statement reiterated that the FPI investment route is unavailable to resident Indians, with limited exceptions as outlined in the Sebi (foreign portfolio investors) regulations, 2019.
The regulator also asked people to always verify the registration status of entities on the Sebi website before investing and use only authentic trading apps from Sebi-registered intermediaries.