Description

SEBI warns the public about fraudsters sending fake Securities Transaction Tax (STT) notices using forged SEBI letterheads and impersonating SEBI officials to extort payments from investors.

Summary

SEBI has issued Press Release No. 15/2026 dated February 26, 2026, cautioning the public about fraudsters circulating fake Securities Transaction Tax (STT) notices. These fraudsters forge SEBI’s letterhead and impersonate SEBI officials to demand payments for alleged outstanding STT amounts. SEBI clarifies that it has no role in issuing STT remittance notices, and investors should remain vigilant.

Key Points

  • Fraudsters are sending fake notices citing powers under the SEBI Act, 1992, and demanding payment for outstanding STT under the Finance Act, 2004.
  • SEBI’s letterhead, logo, seal, and official email IDs are being forged to lend credibility to these fraudulent communications.
  • Fraudsters are also impersonating SEBI officials and various SEBI offices.
  • STT is collected by brokers on every purchase and sale transaction executed on stock exchanges — SEBI plays no role in collecting or remitting STT.
  • SEBI does not issue notices to investors to remit STT amounts, nor does it coordinate with RBI on STT payments.
  • Gullible investors have already lost money by transferring funds to fraudulent accounts.

Regulatory Changes

No new regulatory changes are introduced. This press release is a public advisory clarifying the existing legal framework: STT is governed by the Finance Act, 2004, and is collected by stockbrokers — not by SEBI directly from investors.

Compliance Requirements

The public and investors are urged to:

  1. Verify any enforcement action by SEBI at the official website: Home > Enforcement.
  2. Make any legitimate online order/settlement/recovery payments to SEBI exclusively through the official portal: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html.
  3. Verify SEBI official contact details at: Home > About > SEBI Directory.
  4. Accept emails from SEBI only from addresses ending with @sebi.gov.in.
  5. Confirm SEBI office addresses at: Home > About > Addresses of Offices of SEBI.
  6. Report suspected fraud and verify the authenticity of any letter or notice demanding information or payment on behalf of SEBI.

Important Dates

  • February 26, 2026: Date of SEBI Press Release No. 15/2026 issued from Mumbai.

Impact Assessment

This advisory has high relevance for retail investors and the general public. The fraud scheme exploits limited investor awareness of how STT works, potentially causing direct financial losses. By clarifying the mechanics of STT collection and providing verification checkpoints, SEBI aims to reduce the success rate of such scams. Investors who receive such notices should not make any payments and should report the matter to SEBI or law enforcement authorities. No market-wide operational or trading impact is anticipated; the impact is confined to individual investor protection.

Impact Justification

Public fraud warning with direct financial harm potential to retail investors; SEBI explicitly clarifying it does not issue STT payment notices, helping investors avoid financial loss from impersonation scams.