After fake income tax notices to taxpayers, fraudsters have started sending fake securities transaction tax (STT) notices to investors.
Markets regulator SEBI (Securities and Exchange Board of India) has warned against frauds related to fake STT notices being sent to investors. The regulatory body has also raised concerns about investors being contacted for “account handling” services that promise risk-free profits.
People fall prey to such tactics in the hope of earning unrealistic returns in an uncertain market environment.
SEBI has said that fraudsters are sending notices with no legal standing and demanding payment of outstanding STT liabilities. To appear authentic, the scamsters are using forged SEBI letterheads, logos and seals, and falsely claiming powers conferred by the SEBI Act, 1992.
It explained that STT is automatically collected by brokers at the time of each trade under the Finance Act, 2004. The regulator does not issue demand notices for STT.
The regulator has also flagged “PMS service providers” or “expert fund managers” who claim to help investors make risk-free profits in their demat or trading accounts.
They use suspicious trade data to lure investors into believing that substantial profits can be earned.
SEBI asked investors to stay updated about developments in the capital market only through its official website and social media handles.
It warned that there have been instances where scammers pose as SEBI officials to trap investors.
Investors should verify any communication made in the name of the regulator. It said that any communication from the regulator will be sent through its official email ending with @sebi.gov.in, while enforcement actions are published on its website.
“Investors are advised to deal only with SEBI-registered intermediaries and use authentic trading apps, after verifying the registration status of entities on the official website,” the regulator said.
