SEBI cautions investors against fake notices demanding Securities Transaction Tax (STT) payments

Capital markets regulator Securities and Exchange Board of India (SEBI) on Thursday warned investors about fraudulent notices being circulated in its name, demanding payment of Securities Transaction Tax (STT).

The regulator said these fake notices often forged Sebi’s letterhead, logo, and seal and asked recipients to pay outstanding STT amounts. “It has come to the notice of Sebi that certain fraudsters have circulated notices requiring compliance with Securities Transaction Tax under the Finance Act, 2004,” Sebi said.

Fraudsters impersonating Sebi officials

The regulator also highlighted cases where fraudsters impersonated Sebi officials or offices, sending communications via emails or notices with fake credentials. These scams have resulted in investors transferring money to fraudulent accounts, causing financial losses.

Sebi urged the public to exercise caution and verify the authenticity of any communication demanding payments or information. Key advisory points include:

• All enforcement actions by Sebi are published on the official website under Home-Enforcement.

• Any online payments to Sebi must be made through the official portal: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html

• Official contact details of Sebi officials are listed on the website under Home- About-SEBI Directory.

• Sebi emails only come from IDs ending with @sebi.gov.in.

• Office addresses are available under Home-About-Addresses of Offices of SEBI.

Advisory for investors

The press release emphasized: “…the public is urged to exercise caution and verify the authenticity of letters/notices demanding information or payment on behalf of Sebi.”

Investors are advised to verify their registrations with Sebi and conduct transactions only through Sebi-registered intermediaries' authentic trading platforms.

The regulator said these advisories aim to protect investors from fraud and scams carried out by unregulated or impersonating entities.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Investors should do their own research or consult a registered financial advisor before making investment decisions.