'Ask questions. Verify sources. Diversify thoughtfully,' SEBI chief advises retail investors amid cyber risks

“Ask questions. Verify sources. Diversify thoughtfully” says SEBI chief amid retail surge and cyber risks

• SEBI urges investors to move from awareness to informed investing
• Retail investor base has grown to 14 crores in five years
• SEBI to enhance cyber fraud protection and endorse verified platforms

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Market regulator Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey said on Friday that investors should move from awareness to knowledge and informed participation in the capital market, as retail participation surges and cyber risks grow.

Speaking at Outlook Money’s ‘40After40’ event, Pandey said trust will remain the cornerstone of India’s capital markets even as digital adoption accelerates and new investors enter the ecosystem. He said, “Ask questions. Verify sources. Diversify thoughtfully. And invest with your life cycle goals in mind -not with the emotions of the moment”.

Pandey said India’s investor base has expanded sharply over the last five years, rising multi-fold to around 14 crore. This reflects a major shift, where investing is no longer limited to large cities. Technology has made onboarding easier, access wider, and participation more inclusive. However, he cautioned that awareness is only the first step in the knowledge ladder. Citing SEBI’s Investor Survey, he pointed to a gap between awareness and informed participation, with many investors entering markets with only moderate knowledge, making them vulnerable to mis-selling, scams, and risks they may not fully understand.

With participation swelling to about 14 crores, Pandey urged investors to avoid unsolicited tips and rely only on verified intermediaries, adding that SEBI will continue strengthening transparency and safeguards to ensure markets remain trustworthy as participation broadens.

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A key priority will be tackling cyber fraud through tighter processes, technology-driven interventions and awareness, as investing shifts to digital channels. He called for people to be vigilant, “I urge you to remain vigilant. Please share details of the SEBI Check facility and white-listed apps with your family members, especially senior citizens, as they are most vulnerable to such frauds”. SEBI Check is a platform developed by regulator to authenticate whether the entity is regulated by SEBI or not.

Pandey said SEBI will pursue an “optimum regulation” approach, balancing innovation and market development with robust investor safeguards. He added that the regulator will continue deepening the equities market while widening retail access to corporate bonds and hybrid instruments, offering more diversified avenues beyond traditional savings options.

On governance, the SEBI chief said investor trust ultimately depends on strong disclosures and standards. The regulator will strengthen oversight across listed companies and market infrastructure institutions while improving transparency in market disclosures and investor-facing information.

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