SEBI Chief Tuhin Kanta Pandey: Awareness Campaign Coming to Discourage Unskilled F&O Traders, Tackle Cyber Fraud

Mumbai, July 6, 2025SEBI Chairman Tuhin Kanta Pandey has announced that the Securities and Exchange Board of India will soon launch a comprehensive investor awareness campaign aimed at discouraging unskilled retail investors from trading in Futures & Options (F&O) and highlighting the risks of cyber fraud in the capital markets.

Speaking at a seminar hosted by the Bombay Society of Chartered Accountants (BCAS) on Saturday, July 5, Pandey said SEBI is actively working to foster a culture of responsible investing in India’s growing investor base.

“We are going to do a massive campaign on various issues plaguing the investor ecosystem, whether it is cyber fraud or responsible investing,” Pandey noted. “We are discouraging individuals without enough skills from entering the F&O market.”

Addressing the F&O Craze Among Retail Traders

The announcement comes amid a surge in retail participation in F&O trading, a segment often deemed high-risk and volatile. Pandey stressed that people entering this market segment should do so with adequate financial knowledge and risk understanding, as blind speculation could lead to substantial losses.

Tackling Cyber Fraud: SEBI’s Digital Initiatives

Pandey also acknowledged the rising instances of cyber fraud in the financial markets and stated, “We have to do far more and far more effectively.”

As part of SEBI’s digital safety initiative, two new features will be rolled out from October 1, 2025:

  • Validated UPI

  • SEBI Check

These will allow investors to verify the authenticity of any UPI handle or bank account before making a transaction, aiming to reduce the risk of fraud in online investments and IPO applications.

Diversification and Balanced Portfolios Key

Emphasizing the importance of diversified asset allocation, the SEBI Chairman advised retail investors to maintain balanced portfolios tailored to their risk appetite and financial goals.

This renewed push by SEBI comes at a time when financial literacy and online fraud prevention have become critical to safeguarding India’s expanding retail investor community.

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