Financial market regulator Securities and Exchange Board of India (Sebi) has asked mutual funds to regularly monitor social media platforms and take appropriate action against entities that misuse mutual fund company names. to encourage investors to invest, reported Trade standard.
“Mutual funds should be vigilant and regularly monitor social media to identify entities or groups that camouflage themselves as registered mutual funds or misuse mutual fund names to entice investors,” he said. said Sebi in a communication to the Association of Mutual Funds in India (Amfi).
“Mutual funds should promptly take appropriate action, including issuing a press release/public notice, filing an FIR, etc.,” the letter adds.
The directive came after a news report showed social media platform Telegram was riddled with a number of questionable groups posing as fund houses.
Some of the popular ones include Paytm Doubling Mutual Funds, Paytm Doubling Funds Mutual, Tata Mutual Fund Investment, Bitcoin (Mutual Funds), etc. These accounts have a user base of 50,000 to 90,000 each, depending on the Sebi letter.
First publication: December 02, 2022, 09:59 STI