SEBI Warns Public Against Fake STT Notices Seeking Outstanding Payments

The Securities and Exchange Board of India on Thursday issued a press release warning the public against fake Securities Transaction Tax notices.

SEBI stated that fraudsters are circulating fake notices falsely claiming to have been issued under the SEBI Act, 1992, seeking compliance with STT under the Finance Act, 2004.

According to SEBI, these fake notices use forged SEBI letterheads and request for payments for outstanding STT amounts. The regulator said that no such notices have been issued by it.

The regulator explained that STT is levied on purchase and sale transactions of securities executed on stock exchanges and is collected by brokers. It further clarified that SEBI does not issue notices for remittance of STT amounts, nor does it coordinate with RBI in this regard.

SEBI also noted instances of fraudsters impersonating the identities of its officials and using fake email IDs. They are also sending communication to entities using the letter head, logo and seal of SEBI.

“Gullible investors are losing their hard earned money by believing these fraudsters and transferring money to these fraudulent accounts.” the press release stated

Accordingly, it has advised investors to check its official website for enforcement actions and to ensure that emails claiming to be from SEBI end with “@sebi.gov.in”.

The press release has been issued to caution investors to remain vigilant and verify the authenticity of any communication demanding payment on behalf of SEBI.