Description
SEBI warns investors against fraudsters posing as account handlers or fund managers who solicit trading account credentials to operate demat/trading accounts for a share of profits.
Summary
SEBI has issued Press Release No. 14/2026 dated February 26, 2026, cautioning investors about fraudsters offering ‘account handling’ services. These unregistered individuals pose as expert account handlers, PMS providers, or fund managers, soliciting investors’ demat/trading account credentials to operate trades on their behalf in exchange for a percentage of profits.
Key Points
- Fraudsters present themselves as expert account handlers, PMS service providers, or fund managers promising risk-free profits.
- They require investors to share trading account login credentials and operate the accounts remotely.
- They charge a percentage of profits earned but do not share in any losses incurred.
- These account handlers are NOT registered with SEBI and fall outside SEBI’s regulatory purview.
- Investors are advised to never share trading or demat account credentials with any third party.
Regulatory Changes
No new regulations have been introduced. This is a cautionary press release reminding investors of existing rules requiring dealings only through SEBI-registered intermediaries.
Compliance Requirements
- Investors must deal exclusively with SEBI-registered intermediaries.
- Investors must transact only through authentic trading apps of SEBI-registered intermediaries.
- Investors should verify the registration status of any entity at https://www.sebi.gov.in/intermediaries.html before investing.
- Authentic trading apps can be found at https://investor.sebi.gov.in/Investor-support.html.
Important Dates
- February 26, 2026: Date of press release issuance by SEBI, Mumbai.
Impact Assessment
This advisory directly impacts retail investors who may be targeted by such fraudulent account handling schemes. There is no direct regulatory burden on SEBI-registered entities. The circular reinforces existing investor protection frameworks and highlights a pattern of credential-based fraud in securities markets. Investors who have already shared credentials are at risk of financial loss with no recourse against the unregistered fraudsters.
Impact Justification
High importance as it is a public investor protection alert (PR No.14/2026) warning against active fraud schemes targeting retail investors' trading credentials. Medium impact since it is advisory in nature with no new regulatory mandates on registered intermediaries.