CDSL appeals to be alert on fraudulent claims of share sale on social media
Jul 29, 2024
New Delhi [India], July 29 : Central Depository Services (India) Limited (CDSL) on Monday dismissed rumors circulating on social media about unauthorized share sale purportedly authorized by the depository.
The depository categorically denied such news, labelling it as fraudulent, and stated that it is in the process of reporting the matter to the relevant authorities for further action.
"We have been made aware of the circulation of fictitious content on social media regarding the purported sale of shares supposedly authorized by CDSL. We categorically deny any such developments. Please be advised that we are currently in the process of reporting this matter to relevant authorities," said CDSL in an official statement.
CDSL also advised investors to rely only on authentic communication sources for market information, specifically emphasizing the importance of announcements made on official stock exchange sources. This guidance aims to prevent the spread of misinformation and protect investors from potential scams.
Last month also CDSL highlighted a new security feature: two-factor authentication (2FA). This security measure is designed to enhance the protection of demat accounts against unauthorized access. While depository participants, typically stockbrokers, provide interfaces such as websites and apps for viewing and transacting demat accounts, investors can also use CDSL or NSDL's website to access their demat accounts.
The newly introduced 2FA feature requires investors to enter an OTP (One-Time Password) sent to their registered mobile number and email address after logging into their demat account. This OTP is valid for five minutes from the time of receipt. Once the OTP is entered, access to the account is authorized, allowing the investor to proceed with their transactions.
These steps are highly beneficial to the retail investors and the depository is actively working to maintain investor confidence. It also helps prevent potential financial losses for investors who might otherwise act on false information.
CDSL gives services to several sub-sectors of the Indian capital markets including retail investors, institutional investors such as AIF, and Mutual Funds.
