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SEBI Warns Of FPI Trading Scheme Frauds On Social Media

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SEBI Warns Of FPI Trading Scheme Frauds On Social Media

SEBI, the market regulator in India, has warned investors about fraudulent trading platforms that falsely claim to offer stock market access via the Foreign Portfolio Investors (FPIs) route. These platforms use online courses, seminars, and mentorship programs on social media platforms like WhatsApp and Telegram to lure victims. Individuals posing as SEBI-registered FPI employees persuade people to download apps for share purchases and IPO subscriptions. SEBI clarified that the FPI investment route is not available to resident Indians, with limited exceptions. They advised investors to stay vigilant and avoid such platforms. A study by SEBI revealed a significant increase in retail investors in India's futures and options markets, with nine out of ten experiencing losses.

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