SEBI has issued a warning to regulated entities and listed companies regarding impersonation scams involving CEOs and MDs, advising them on verification practices and cyber security measures.
SEBI's Advisory on CEO/MD Impersonation Scams
The Securities and Exchange Board of India (SEBI) has released a cautionary statement warning regulated entities and listed companies about the rising incidents of impersonation scams involving Chief Executive Officers (CEOs) and Managing Directors (MDs). In light of these scams, SEBI has advised companies to rigorously verify any fund transfer requests to avoid falling victim to fraudulent schemes.
The advisory underscores the need for heightened vigilance and the implementation of stringent verification protocols to secure financial transactions. SEBI is encouraging all entities to adopt robust cybersecurity measures and training to safeguard against these sophisticated scams.
For legal practitioners, this serves as a critical reminder of the duty of care owed to clients in ensuring the integrity of financial operations. Counsel should guide companies in improving their verification processes and enhancing cybersecurity protocols to mitigate risks of fraud.
Citations
- SEBI Advisory (2026) SEBI 1