**Summary:**
SEBI (Securities and Exchange Board of India) issued Public Relations Notice No. 532025 on August 22, 2025, advising Indian residents to exercise caution regarding investment schemes promoted via social media (e.g., WhatsApp, Telegram) that falsely claim to offer stock market access through Foreign Portfolio Investors (FPIs) or Foreign Institutional Investors (FIIs). These schemes, which include offers of institutional trading accounts, IPOs at discounted prices, guaranteed IPO allotment, and participation in anchor books or block trades at discounted prices, are fraudulent and not endorsed by SEBI.
The advisory emphasizes that direct investment via the FPI route is generally unavailable to resident Indians, except under specific conditions defined in the SEBI Foreign Portfolio Investors Regulations, 2019. Investors are urged to verify the registration status of entities on the SEBI website (https://www.sebi.gov.in/intermediaries.html) before investing and to conduct transactions exclusively through authentic trading apps of SEBI-registered intermediaries (https://investor.sebi.gov.in/Investorsupport.html). Investors are encouraged to visit SEBI's investor website for educational resources and guidelines on safe investment practices.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body advising investors to exercise caution regarding fraudulent trading schemes.
Foreign Portfolio Investors: Entities falsely claimed to provide stock market access to Indian residents.
Foreign Institutional Investors: Entities falsely claimed to provide stock market access to Indian residents.
SEBI Foreign Portfolio Investors Regulations, 2019: Regulations outlining the conditions for FPI investments.
IPOs: Initial Public Offerings; mentioned in the context of fraudulent claims of guaranteed allotment or discounted prices.
Anchor book: Mentioned in the context of fraudulent schemes offering participation at a discounted price.
Block Trade: Mentioned in the context of fraudulent schemes offering participation at a discounted price.
Mumbai, Maharashtra: City where the advisory was issued.
PR No.53/2025
Advisory Against investment in Fraudulent Trading Schemes claiming to be
offered to Indian residents by FPIs
Securities and Exchange Board of India (SEBI) advises investors to exercise caution when
dealing with social media messages, WhatsApp groups, Telegram channels, or apps
claiming to offer stock market access through Foreign Portfolio Investors (FPIs) or Foreign
Institutional Investors (FIIs).
These schemes are fraudulent and do not have SEBI’s endorsement. Be wary of claims
such as:
• Institutional trading account
• IPOs at discounted price
• Guaranteed allotment in IPO
• Ability to participate in Anchor book
• Block Trade at discounted price
Remember, the FPI investment route is unavailable to resident Indians, with limited
exceptions as outlined in the SEBI (Foreign Portfolio Investors) Regulations, 2019. Always
verify the registration status of entities on SEBI’s website before investing and use only
authentic trading apps from SEBI-registered intermediaries.
Stay Informed:
• Visit SEBI’s investor website for resource material and Do’s and Don’ts of investing.
Page 1 of 2• Verify entity registration on SEBI’s website at
https://www.sebi.gov.in/intermediaries.html
• Carry out transactions only through authentic trading apps of SEBI registered
intermediaries at https://investor.sebi.gov.in/Investor-support.html
Mumbai
August 22, 2025
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