SEBI Chief: Vigilance Against Cyber Fraud is Key

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has reiterated the regulator's commitment to "optimum regulation," ensuring market innovation does not compromise integrity or investor safety. Pandey cautioned that cyber fraud is expected to escalate with increasing digital engagement, urging continuous vigilance, particularly for senior citizens.

Pandey highlighted the significant growth in India's investor base, now comprising approximately 14 crore individuals. He noted that despite this expansion, driven by technology, a persistent gap exists between investor awareness and actual informed participation. This vulnerability exposes many to mis-selling and poorly understood investment risks.

To address these challenges, SEBI is actively combating cyber fraud and scams. Initiatives like the SEBI Check facility allow investors to verify intermediary credentials in seconds. New UPI handle structures and a white-list of authorized broker mobile applications also enhance security against cloned apps and fraudulent entities.

Further safeguards include direct crediting of securities to demat accounts and funds held by clearing corporations. Investors can now instantly freeze trading accounts upon detecting suspicious activity. SEBI is also improving disclosure standards for IPOs and mutual funds, alongside platforms like PaRRVA for verifying intermediary performance claims.

The revamped SCORES 2.0 system offers enhanced grievance redressal, while the SMART ODR platform has successfully resolved numerous disputes, demonstrating SEBI's commitment to speed and transparency. These measures aim to build trust in India's rapidly expanding capital markets.