**Executive Summary**
This press release, dated February 26, 2026, issued by the Securities and Exchange Board of India (SEBI), cautions investors about stock market scams perpetrated through account handling services. SEBI advises investors not to trust unregistered account handlers/fraudsters and to avoid sharing account credentials. Investors are urged to deal only with SEBI-registered intermediaries and authentic trading apps.
**Key Points / Main Content**
* **Account Handling Scams:**
* Certain individuals offer "account handling" services, claiming to be experts who can generate risk-free profits.
* These handlers often demand a share (x%) of the investor's profits and showcase successful trades from other investors.
* They require access to the investor's trading account credentials to execute trades.
* Profits or losses are directly credited or debited to the investor's account. Losses are not shared by the fraudster.
* **SEBI Advisory:**
* Investors should not trust claims made by unregistered account handlers/fraudsters.
* Investors should refrain from sharing trading account credentials.
* Deal only with SEBI-registered intermediaries and use authentic trading apps.
* Verify the registration status of entities with SEBI at https://www.sebi.gov.in/intermediaries.html before investing.
* Carry out transactions only through authentic trading apps of SEBI registered intermediaries at https://investor.sebi.gov.in/Investor-support.html.
* **Purpose of Release:**
* The press release aims to caution investors about frauds and scams perpetrated by unregulated entities.
* It informs investors on how to protect themselves while transacting in the securities market.
**Impact Analysis**
**Investors:**
* **Impact:** Warned about potential scams, need to exercise caution while engaging with account handlers and sharing account information.
* **Action Required:** Refrain from trusting unregistered account handlers/fraudsters, avoid sharing trading account credentials, and verify the registration status of intermediaries with SEBI before investing. Use only authentic trading apps of SEBI-registered intermediaries.
Key Entities Referenced
SEBI: Securities and Exchange Board of India, the regulator issuing the caution to investors.
Account Handling Services: The investment services being used to perpetrate stock market scams.
PR No.14/2026
Caution to Investors on Stock Market Scams through
Account Handling Services
It has come to the notice of SEBI that certain persons are offering ‘account handling’
services to help investors invest in securities market (hereafter referred to as ‘account
handlers/ fraudsters’).
Investors are being made aware that these account handlers usually portray
themselves as experts in account handling services, PMS service providers or expert
fund managers who claim to help investors to make risk free profits in their demat/
trading account. While they specify the minimum capital requirement, which has to be
arranged by an investor, they charge x% as a share from the investor’s profit. They
exploit investors by showcasing trades done by them for other investors in which they
claim to have generated substantial profits.
These fraudsters require investors to share their trading account credentials with them
and key in trades by operating these accounts. The profits/ losses thus incurred, are
directly credited/ debited to/from the investor’s account. The account holder is
expected to share x% of profit so earned, if any. The loss incurred is not shared by the
fraudster.
In view of the above, investors are advised to not trust claims of such account
handlers/ fraudsters and refrain from sharing their account credentials with anyone.
These account handlers/ fraudsters are not registered by SEBI and do not fall under
the purview of SEBI.
Page 1 of 2Investors are advised to deal with only SEBI registered intermediaries and through
authentic trading apps. Investors are advised to verify the status of registration of
entities with SEBI at https://www.sebi.gov.in/intermediaries.html before investing and
to carry out transactions only through authentic trading apps of SEBI registered
intermediaries at https://investor.sebi.gov.in/Investor-support.html.
SEBI is issuing this Press Release to caution investors about the frauds and scams
being carried out by unregulated entities and the manner in which they can protect
themselves while carrying out transactions in the securities market by dealing with
SEBI registered intermediaries.
Mumbai
February 26, 2026
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