SEBI Warns Against ‘Account Handling’ Stock Market Scams
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- Last Updated on 1 March, 2026
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Press Release No.14/2026, Dated: 26.02.2026
The Securities and Exchange Board of India (SEBI) has cautioned investors against unregistered entities offering ‘account handling’ services that promise risk-free profits in demat and trading accounts.
1. Modus Operandi of Unregistered Entities
SEBI has observed that certain individuals and entities are approaching investors with offers to manage their trading accounts and generate assured returns. These entities typically:
- Seek access to investors’ demat and trading account login credentials
- Execute trades on behalf of investors
- Claim a share in the profits generated
- Do not assume any responsibility for losses incurred
Such arrangements expose investors to financial risks, misuse of account credentials, and potential regulatory violations.
2. Risks to Investors
Investors who share their account access details with unregistered entities risk:
- Unauthorised trading and financial losses
- Misuse of personal and financial information
- Lack of legal recourse in case of disputes or losses
- Exposure to fraudulent or manipulative trading practices
SEBI has emphasised that promises of risk-free or guaranteed profits are misleading and should be treated with caution.
3. SEBI Advisory to Investors
SEBI has advised investors to:
- Not share login credentials of demat or trading accounts with any third party
- Deal only with SEBI-registered intermediaries such as brokers and investment advisers
- Use only authentic and verified trading applications
- Verify the registration status of intermediaries on SEBI’s official website before engaging their services
4. Conclusion
The advisory aims to protect investors from fraudulent account-handling schemes and to encourage engagement only with authorised and regulated intermediaries. Investors are urged to remain vigilant and avoid sharing sensitive account information with unregistered or unknown persons.
Click Here To Read The Full Circular
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