Sebi asks MFs to be vigilant against fraud groups on Telegram app, take action if needed

Dec 2, 2022

Synopsis
The word of caution from the regulator comes following observations of such acts on the platform where certain groups have been misusing and misrepresenting some asset management companies

The Securities and Exchange Board of India has asked mutual fund houses to be vigilant against dubious groups misrepresenting themselves as registered fund managers on messenger platform Telegram, ET Now reported.

The word of caution from the regulator comes following observations of such acts on the platform where certain groups have been misusing and misrepresenting some asset management companies.

According to reports, the regulator has mentioned some of the Telegram groups misrepresenting mutual fund houses. Paytm Doubling Mutual Funds had 90,818 users, and Paytm Doubling Funds Mutual 86,435 users.

If an AMC comes across any activities or posts on social media that are dubious in nature, it should be prompt in taking appropriate actions and make it public and file a police complaint, the regulator said.

Sebi has also asked fund houses to sensitise stakeholders such as distributors, brokers and investment advisors and ensure proper due diligence.

[The Economic Times]