SEBI Warns Against ‘Account Handling’ Stock Market Scams

Press Release No.14/2026, Dated: 26.02.2026

The Securities and Exchange Board of India (SEBI) has cautioned investors against unregistered entities offering ‘account handling’ services that promise risk-free profits in demat and trading accounts.

1. Modus Operandi of Unregistered Entities

SEBI has observed that certain individuals and entities are approaching investors with offers to manage their trading accounts and generate assured returns. These entities typically:

Seek access to investors’ demat and trading account login credentials
Execute trades on behalf of investors
Claim a share in the profits generated
Do not assume any responsibility for losses incurred

Such arrangements expose investors to financial risks, misuse of account credentials, and potential regulatory violations.

2. Risks to Investors

Investors who share their account access details with unregistered entities risk:

Unauthorised trading and financial losses
Misuse of personal and financial information
Lack of legal recourse in case of disputes or losses
Exposure to fraudulent or manipulative trading practices

SEBI has emphasised that promises of risk-free or guaranteed profits are misleading and should be treated with caution.

3. SEBI Advisory to Investors

SEBI has advised investors to:

Not share login credentials of demat or trading accounts with any third party
Deal only with SEBI-registered intermediaries such as brokers and investment advisers
Use only authentic and verified trading applications
Verify the registration status of intermediaries on SEBI’s official website before engaging their services

4. Conclusion

The advisory aims to protect investors from fraudulent account-handling schemes and to encourage engagement only with authorised and regulated intermediaries. Investors are urged to remain vigilant and avoid sharing sensitive account information with unregistered or unknown persons.