Stock market scams in one form or the other continue to witness an unprecedented rise in India. Scamsters target gullible investors through WhatsApp, Telegram and other social media platforms, luring them with the flashy claims of quick returns. This is despite SEBI’s warnings cautioning investors against unsolicited messages on WhatsApp and other similar groups.
To appear credible and gain trust of investors, the miscreants create fake expert profiles. In many instances, they impersonate SEBI registered investment advisers (RIA), forging their licenses. A recent tactic involves circulating screenshots of SEBI’s official list of RIAs to falsely convince investors that they are dealing with a legitimate, registered professional.
So, how can an investor differentiate between a genuine RIA and an imposter?
While a simple solution is to apply a healthy dose of paranoia or common sense when approached by suspicious people promising you shortcuts to riches, there are 2 practical and straightforward ways to protect yourself :
1. Valid UPI handles: Every SEBI-registered intermediary (Investment Adviser, Research Analyst, etc.) must now use a special UPI ID format approved by SEBI, BSE/NSE, and their bank.
The format makes it clear who you are dealing with.
<username>. <intermediary category> @ valid <Bank Name>
“@valid” is the defining feature of valid UPI handles. All such handles will have “valid” added to the UPI handle.
If the keyword “valid” is missing from the UPI handle shared with you, this means you are NOT dealing with a registered intermediary and must avoid engaging with such a person.
2. SEBI Check feature: SEBI has introduced the “SEBI Check” feature, which allows investors to verify:
- UPI ID
- QR Code
- IFSC code
- Bank account number
You can confirm whether the payment details belong to a genuine SEBI-registered intermediary. Here is the link to the SEBI check feature:
https://siportal.sebi.gov.in/intermediary/sebi-check
If any of these fail the SEBI check, then avoid fund transfer and disengage.
Investors must take responsibility and do their own due-diligence. With SEBI Valid UPI Handles and SEBI Check, just verify the details and protect your hard-earned money.
Here is also the link to a video explainer on Valid UPI handles and SEBI check from BSE India Youtube channel.