In a bid to strengthen the fight against financial frauds, the Securities and Exchange Board of India (Sebi) signed a Memorandum of Understanding (MoU) with the Department of Telecommunications (DoT) to regularly exchange data and intelligence. This collaboration aims to detect and prevent fraudulent activities in the securities market.
The core of this partnership is DoT’s Digital Intelligence Platform (DIP), designed for secure, real-time information sharing to tackle cybercrime and financial fraud. The MoU will enhance regulatory oversight and improve early detection of scams.
The agreement allows for automatic sharing of the Mobile Number Revocation List (MNRL), ensuring that investor accounts are linked only to active mobile numbers. In return, Sebi will provide inputs on telecom resources linked to accounts involved in cyber fraud.
The initiative aims to shift from a reactive enforcement approach to a proactive prevention framework, particularly significant in India’s expanding digital investment ecosystem. The Financial Fraud Risk Indicator will serve as an early warning system for potentially fraudulent mobile connections.
The partnership builds on existing initiatives that have already disconnected over 88 lakh fraudulent mobile connections, preventing financial losses of approximately Rs 2300 crore in the past ten months.
