Fraudulent Investment Scams Looting Citizens; SEBI Must Act Tough – Milind Deora’s Hard-Hitting Intervention Forces Government Reply in Rajya Sabha

New Delhi: Shiv Sena (Shinde group) Rajya Sabha MP Milind Deora today sounded the alarm in Parliament over the rising menace of fraudulent investment advisory scams targeting ordinary citizens—especially vulnerable senior citizens—through social media platforms like WhatsApp, Telegram, and YouTube.

Deora raised a pointed and urgent question in the Rajya Sabha, holding the government and regulatory bodies accountable for the unchecked proliferation of fake investment advisers who are duping people out of their life savings by falsely claiming SEBI registration.

Responding to Deora’s intervention, Minister of State for Finance Pankaj Chaudhary was compelled to admit that SEBI has been receiving multiple complaints about such frauds. These scams involve unregistered individuals and entities giving bogus stock market tips, impersonating SEBI-registered advisers, and exploiting digital platforms to run elaborate financial rackets.

Milind Deora questioned why despite existing regulations, such scams continue to flourish unchecked. He demanded to know what concrete steps SEBI and the Finance Ministry are taking to stop this loot of citizens’ savings.

In its reply, the government said SEBI is invoking the Investment Advisers Regulations, 2013, which clearly state that no unregistered person can offer investment advice. The ministry also confirmed that SEBI is issuing warnings, but Deora stressed that mere advisories are not enough.

“The time for press notes is over. We need strict enforcement, criminal action, and real-time digital crackdowns,” Deora said, highlighting that senior citizens are losing decades of savings due to regulatory inertia.

SEBI, according to the government, is conducting investigations against unregistered entities both on receipt of complaints and suo motu. In cases of non-compliance, legal action is being taken under the SEBI Act, 1992. However, Deora demanded far more aggressive measures, including faster prosecutions and coordinated action with social media giants to shut down scam channels and accounts instantly.

SEBI has undertaken investor awareness programs warning against fake trading apps, fraudulent influencers, and deep fake financial videos. But Deora argued that awareness alone will not stop this epidemic of digital financial crime.

“The government must act decisively. Innocent people are being looted daily in the name of investments. We need accountability, not just assurances,” Deora asserted.

This intervention marks one of the strongest stands yet by a Member of Parliament on the issue of financial frauds proliferating through social media, putting both SEBI and the Finance Ministry on notice.