SEBI Plans Awareness Drive on F&O Risks, Cyber Fraud, and Promotes Smarter Investing

The Securities and Exchange Board of India (SEBI) is preparing to roll out a broad-based investor education campaign aimed at improving awareness across different segments of the capital market, as per news reports.

Speaking at an event hosted by the Bombay Chartered Accountants Society (BCAS) on July 5, 2025, SEBI Chairman Tuhin Kanta Pandey emphasised the importance of protecting retail investors from potential pitfalls, especially in complex and high-risk areas like futures and options (F&O).

“We will soon launch a massive awareness campaign covering multiple issues affecting investors—from cyber fraud to responsible investing,” said Pandey.

F&O Trading Risks Under the Spotlight

One of the key areas of focus for SEBI's upcoming campaign is the rising participation of unprepared individuals in the F&O segment, which has been growing rapidly among retail investors. Pandey noted that SEBI intends to discourage participation by individuals lacking the necessary financial knowledge and risk management skills.

This is part of SEBI’s broader move to align market participation with investor awareness and preparedness, ensuring individuals fully understand the complexity and risk profile of derivative instruments before engaging with them.

SEBI Acknowledges Need for Better Cyber Fraud Controls

On the issue of cybersecurity, Pandey acknowledged that although steps have been taken, more robust and effective measures are urgently required. To address this, SEBI plans to integrate additional safety features into the Unified Payments Interface (UPI) system.

From October 1, 2025, new functionalities like Validated UPI and SEBI Check will be introduced. These will allow investors to verify the legitimacy of UPI handles and associated bank accounts, offering an additional layer of protection against online fraud.

Retail Access to G-Secs via Brokers Coming Soon

In a significant update, the SEBI Chairman shared that the regulator, in coordination with the Reserve Bank of India (RBI), is moving forward with plans to enable direct retail participation in government securities (G-secs).

According to Pandey, phase one of this initiative has been finalised. Retail investors will soon be able to place G-sec orders through brokers in a manner similar to equities. The platform will be exchange-driven, creating a transparent and efficient channel for government bond trading.

Read More: Maharashtra to Train Farmers in Futures & Options for Cotton, Maize, Turmeric.

Conclusion

SEBI’s upcoming initiatives reflect a proactive stance toward protecting investors, especially in high-risk areas like F&O and digital payments. With the planned investor education campaign, upgraded UPI safeguards, and broader access to G-secs, the regulator is focusing on improving both the financial literacy and infrastructure supporting India's retail investment ecosystem.

The shift toward risk-aligned regulation also indicates a more nuanced approach as India's capital markets continue to evolve.

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