NSE Issues Public Warning on Fake SEBI STT Notices, Urges Investors to Stay Alert

The National Stock Exchange of India (NSE) has issued a public warning cautioning investors against fraudulent notices falsely claiming to be from the Securities and Exchange Board of India (SEBI). 

In an official press release dated February 24, 2026, NSE highlighted cases where fraudsters used forged SEBI letterheads to demand payment of Securities Transaction Tax (STT) for the release of funds. Therefore, it has urged market participants to remain vigilant and verify communications before responding.

Fraudsters Impersonating SEBI Officials

According to the press release, NSE has been informed that scammers are circulating forged communications impersonating SEBI officials. These fake documents misuse SEBI’s logo, seal, and letterhead to create authenticity.

The fraudulent notices falsely claim that investors must pay STT under the Finance Act, 2004, to release pending funds. NSE clarified that neither SEBI nor stock exchanges issue letters demanding direct tax payments for fund release .

Key Advisory for Investors

To protect investors, NSE outlined several precautionary measures:

• Verify the authenticity of any communication demanding payment or personal details.
• Check genuine SEBI circulars only on www.sebi.gov.in and NSE circulars on www.nseindia.com.
• Avoid sharing personal or financial information based on suspicious documents.
• Report fraudulent communications through official grievance redressal mechanisms.

The exchange emphasised that investors must exercise due caution when dealing with financial communications .

NSE’s Role and Market Position

In the same release, NSE reiterated its position as India’s largest stock exchange by turnover since 1995, and the world’s largest derivatives exchange by trading volume in calendar year 2025 . The exchange stressed its commitment to maintaining system reliability and investor protection.

Read more: Jane Street vs SEBI: SAT Adjourns High-Stakes Market Manipulation Case.

Conclusion

The latest advisory underscores growing concerns around financial fraud targeting retail investors. As digital trading expands, impersonation scams are becoming more sophisticated. NSE’s cautionary note serves as a reminder that regulatory authorities do not demand direct tax payments through informal channels. Investors are advised to verify all communications through official sources to safeguard their funds and personal information.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.