Capital markets regulator Securities and Exchange Board of India (SEBI) has warned the Association of Mutual Funds in India about Telegram groups masquerading as existing mutual funds in an attempt to dupe gullible investors.
In a letter to AMFI, SEBI said that some Telegram groups in the name of existing mutual funds may adopt innovative methods to cheat investors by camouflaging as registered mutual funds.
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Some popular groups are Paytm Dabling MF and Paytm Dabling Fund Mutual with 90,818 and 86,435 users respectively. Besides this, there are Tata MF Investments (77,509 users), Bitcoin MF (57,726), Tata MF Trust (56,368) and HDFC MF Money Doubling (52,240).
In view of proliferation of activities on social media which are questionable in nature and not in the interest of investors who intend to invest in MFs, SEBI has directed AMFI registered MFs to be vigilant and regularly monitor social media So that the institutions can be identified. Cheating to lure investors.
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SEBI said that based on this observation, AMFIs and MFs should take prompt action including issuing public notices and filing police complaints so that these entities stop misusing MF names.
Both AMFIs and MFs should also inform other stakeholders including distributors, brokers and investment advisors about these developments so that due diligence can be done and appropriate action can be taken immediately.
Published on December 1, 2022