Summary of this article
Pandey warns investors against misleading social media advice and quick-return promises
Sebi promotes UPI verification and stronger grievance redressal mechanisms
Over 41,000 investor awareness programmes reached 22 lakh people in FY26
Sebi Chairman Tuhin Kanta Pandey has urged investors to look beyond promises of quick returns and understand the risks involved in investing, warning against misleading social media advice and increasingly sophisticated digital frauds.
Speaking at the Bharat Chamber of Commerce in Kolkata on October 31, Pandey said easier access to securities markets must be matched by greater investor awareness.
"Opening an investment account has become much easier. Understanding investment risks, however, still requires knowledge, care and sound judgement," he said.
He cautioned investors against chasing higher returns without assessing the risks and said investment decisions should reflect their financial goals and risk appetite. He also stressed that long-term wealth creation is different from short-term speculation.
The warning comes at a time when fraudsters are increasingly using social media platforms, WhatsApp groups and fake trading applications to target retail investors. In a recent case reported by The Indian Express on October 28, a 47-year-old Pune-based software engineer allegedly lost Rs 2.17 crore in a fake share trading scheme.
The fraudsters reportedly lured him through an Instagram advertisement and added him to a WhatsApp group where members shared stock tips and screenshots of purported investment gains. They also used a fake Sebi registration certificate to make their trading application appear genuine. The victim transferred Rs 2.17 crore to multiple bank accounts before discovering that the platform was fraudulent, the newspaper reported.
Sebi Steps Up Investor Protection
Pandey said Sebi has introduced several measures to protect investors from fraud. These include validated UPI handles and the Sebi Check facility, which allow investors to verify payment details of registered intermediaries before transferring money.
The regulator has also strengthened grievance redressal through SCORES 2.0 and online dispute resolution. Its MITRA platform helps investors trace inactive and unclaimed mutual fund folios.
Sebi is also taking action against misleading investment content and associations between regulated entities and unregistered investment advisers, Pandey said.
The regulator has separately warned investors about fake trading applications and stock tips circulated through WhatsApp and Telegram groups. In an advisory, Sebi explained how fraudsters use fake profit screenshots and promises of high returns to persuade investors to transfer money to fraudulent platforms.
Sebi's Investor Awareness Drive
During FY26, more than 41,000 investor awareness programmes were conducted in collaboration with stock exchanges and depositories, reaching over 22 lakh participants, Pandey said.
Under Project Jagrook, Sebi and its partners launched the 'Samajh Se Investing Simple' campaign on October 5. The regulator has also started a WhatsApp channel called 'Sebi Awareness' to share investor education messages.
"The idea is simple. Investors should understand before they act," Pandey said.
He said investors must learn to evaluate risks and rely on credible information rather than market rumours and promises of quick returns.
Pandey's remarks come amid a sharp increase in retail participation in India's securities markets. The number of unique investors has increased fourfold since FY19 to more than 15 crore, according to his speech.
He said easier onboarding, digital access and a wider choice of investment products have brought securities markets closer to millions of households. However, he stressed that expanding access alone is not enough.
Pandey said expanding market participation must go hand in hand with investor awareness and protection. "Growth has to be matched by protection," he said.
