Sebi deploys AI tools to counter retail investor scams
Mumbai: As the number of retail investors surges, Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey said the regulator is intensifying surveillance and technology-driven enforcement to curb rising pre-investment scams that divert funds even before investors interact with registered intermediaries.
Pandey, who completed one year at the helm on March 1, said many new and intending investors are being misled by fake trading apps, WhatsApp groups and promises of high returns, often diverting money to personal accounts of fraudsters. “Someone who is intending to come is actually being trapped by promises of high returns. It doesn’t even come to Sebi or to any broker,” he said. Calling such instances “quite many”, Pandey said Sebi has stepped up measures to safeguard investors, highlighting tools such as SEBI Check to verify the legitimacy of entities soliciting investments and encouraging the use of validated platforms and UPI handles. He said the regulator will roll out multimedia and multilingual awareness campaigns.
Pandey advocated investor discipline, favouring long-term investing through SIPs and pooled vehicles over speculative trading in complex instruments like derivatives. He also warned against unrealistic returns promised by unregistered finfluencers.
