India’s capital markets regulator, the Securities and Alternate Board of India (Sebi), has partnered with cloud-based safety platform DigiLocker to assist cut back unclaimed property and assist buyers securely handle their digital paperwork, in response to a publish by NSE on the social media platform X.
Sebi’s transfer to collaborate with DigiLocker comes because the regulator goals to cut back unclaimed property within the securities market and defend the nominee’s curiosity in case of the loss of life of the first investor for the account.
“SEBI has partnered with DigiLocker to cut back unclaimed property within the securities market and defend nominees’ pursuits,” in response to the publish on X.
Minimising unclaimed property
To minimise unclaimed property purchased by buyers within the capital markets, Sebi has taken many initiatives, akin to mandating the submission of contact, to simplify the transmission course of.
5 SEBI initiatives for unclaimed property
1. Sebi launched norms for inactive accounts and folios
2. Necessary contact and financial institution particulars submission
3. Nomination requirement or opt-out mandate
4. Simplified technique of transmission
5. Centralised Reporting of Investor Demise.
A collaboration with DigiLocker reveals that the regulator is specializing in leveraging the safety of the digital platform to supply buyers its providers.
“A safe option to handle digital paperwork—constructed with buyers in thoughts,” mentioned NSE in its publish on X. “SEBI is now leveraging the DigiLocker to boost the safety and accessibility for buyers,” they mentioned.
SEBI flags inventory market fraud
Based on an earlier Mint report, Sebi mentioned that they’ve observed an increase in in inventory market frauds by numerous social media platforms like in inventory market frauds.
“With growing adoption of digital communication platforms, it’s noticed that scammers are engaging victims by giving buying and selling calls within the title of offering schooling. Additionally they present deceptive or misleading testimonials, promise or assure of assured or risk-free return and so on, by numerous SMPs,” they mentioned, as per the report on April 21.
Sebi highlighted that Unregistered Funding Advisory Providers, which present pretend certificates purportedly issued by the markets regulator, are on the rise, together with entities that are impersonating SEBI-registered entities through the use of the fraudulent buying and selling platform.
Sebi additionally mentioned that buyers ought to keep away from deceptive and manipulative content material shared on social media, which is unfold by fraudulent advertisements or posts on numerous platforms.
Scammers additionally entice buyers by claiming they supply “unique” providers on their platforms. These practices are carried out to lure in buyers with huge guarantees of their buying and selling returns expertise.
