SEBI to Probe Illegal Investment Schemes on Internet

A handful of our country’s population is naive and can be easily tricked or deceived via fraudulent schemes promoted through emails, SMSes and more. As such, these schemes have come under the scanner of regulatory authorities such as SEBI.

New Delhi: A large number of ‘guaranteed-return’ schemes, being promoted through emails, websites, blogs and social media platforms, have come under regulatory scanner for luring gullible investors to unauthorized investment products promising huge returns, reported The Economic Times.

SEBI to Probe Illegal Investment Schemes on Internet

SEBI (Securities and Exchange Board of India) protects the interests of investors in securities and promotes the development of the securities market through appropriate regulation. The regulatory authority had received numerous complaints before about fraudulent schemes and began looking into the matter through its own technical systems, tracking the Internet and social media platforms for the same.

Businesses like retail, real estate and unauthorized credit cooperative schemes promising unrealistic returns are being probed by the agency. If found unethical in practices, the entities could face actions as per ‘Prevention of Fraudulent and Unfair Trade Practices Regulations’.

To avoid regulatory glare, the operators of these schemes, had not been using the traditional modes to promote their business but member groups on websites, blogs and social networking media platforms.

For complete information, see The Economic Times Report.