SEBI Warns Investors Against Fake STT Notices

• 27 Feb 2026
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The Securities and Exchange Board of India (SEBI) has noticed that certain fraudsters have circulated notices requiring compliance with Securities Transaction Tax (STT) under the Finance Act, 2014. It has been observed that fraudsters are sending fake notices with SEBI’s letter head and requesting for payments for outstanding STT amounts.

The market regulator has clarified that it does not issue notices to investors for STT remittance. Further, it does not coordinate with the Reserve Bank of India (RBI) for such collections. In the press release dated 26 February, the regulator said, “It is being informed that STT is  levied  on  every  purchase  and  sale transaction  of  securities  executed  on  stock exchanges and the tax is collected by the broker.”

SEBI has taken into observation various instances of fraud where individuals are impersonating SEBI officials as well as using the names of SEBI offices and email addresses. These fraudsters are claiming to be SEBI officials and are sending communications to entities on SEBI letterhead, complete with the logo and seal of the organization. 

Unfortunately, unsuspecting investors are losing their hard-earned money by believing these fraudsters and transferring funds to fraudulent accounts. On 24 February, the National Stock Exchange (NSE) issued a similar cautionary notice regarding entities that are using SEBI's letterhead to demand payments for STT.

The NSE notice said, “NSE cautions investors to protect themselves from fraudsters and remain vigilant while dealing with communications fabricated to have been sent by SEBI officials and senders seeking payment on behalf of SEBI.”

Sources: SEBI and Livemint