Mumbai, March 2 As the number of retail investors surges, Sebi Chairman Tuhin Kanta Pandey said the regulator is intensifying surveillance and technology-driven enforcement to curb rising pre-investment scams that divert funds before investors even interact with registered intermediaries.
Pandey, who completed one year at the helm of the regulator on March 1, noted that many new and intending investors are being misled by fake trading apps, WhatsApp groups, and promises of high returns, often diverting funds to personal accounts of fraudsters long before any engagement with Sebi-regulated intermediaries.
He emphasized that investor caution must evolve beyond mere awareness to informed action, especially given the country’s expanding retail base.
Responding to a query on pre-investment frauds, Pandey said many individuals intending to enter the markets are being "hijacked by scamsters" even before they reach a Sebi-registered intermediary.
"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 because the person has already fallen prey," he told
