SEBI has issued a warning to regulated entities and listed companies regarding impersonation scams where fraudsters pose as CEOs or MDs. Entities are advised to implement verification protocols for fund transfer requests and enhance cybersecurity measures.
SEBI Warns Against CEO Impersonation Scams
The Securities and Exchange Board of India (SEBI) has issued a serious warning directed at regulated entities and listed companies regarding increasing incidents of impersonation scams. Fraudsters are reportedly posing as Chief Executive Officers (CEOs) or Managing Directors (MDs) to deceive organizations into transferring funds.
SEBI stresses the importance of rigorous verification protocols for any fund transfer requests. Additionally, companies are encouraged to bolster their cybersecurity measures to safeguard against these fraudulent activities. By enhancing internal controls and awareness, organizations can protect themselves from potential financial losses.
This warning is particularly timely in the evolving landscape of corporate governance and provides a crucial reminder for legal and compliance practitioners on the need for vigilance against deceptive practices. Companies should conduct regular audits of their systems and ensure that employees are trained to recognize potential scams.
Citations
- SEBI Advisory (2026) SEBI