Strategic Data Sharing to Enable Early Detection of Securities Market Scams and Protect Investors

In a significant move to reinforce the security of India’s financial ecosystem, the Department of Telecommunications (DoT) and the Securities and Exchange Board of India (SEBI) today entered into a strategic partnership by signing a Memorandum of Understanding (MoU) to enhance cooperation in tackling the misuse of telecom resources in securities market frauds and investment-related scams.

The MoU was signed by Shri Sanjeev Kumar Sharma, Deputy Director General, AI & Digital Intelligence Unit (AI&DIU), DoT, and Shri Sandip Pradhan, Whole Time Member, SEBI, in the presence of Shri Deb Kumar Chakrabarti, Member (Services), Digital Communications Commission, marking a significant step towards deeper convergence between telecom intelligence and financial market regulation.

Key provisions of the DoT–SEBI partnership

At the heart of the agreement is a structured data-sharing mechanism aimed at early detection and disruption of fraudulent activities. DoT will share the Financial Fraud Risk Indicator (FRI) with SEBI to help identify mobile numbers linked to suspicious patterns through multi-dimensional analysis. The Mobile Number Revocation List (MNRL) will also be shared automatically, enabling SEBI-regulated entities, including brokers and asset management companies, to ensure that investor accounts are associated only with active and valid mobile connections. In a reciprocal arrangement, SEBI will provide inputs on telecom resources linked to accounts involved in cyber fraud, impersonation or money mule activities, allowing swift action in the telecom domain.

This intelligence exchange will be enabled through DoT’s Digital Intelligence Platform (DIP), which currently connects more than 1400 stakeholders and facilitates real-time sharing of actionable information across institutions.

Towards a Proactive and Integrated Framework for Investor Protection

The collaboration assumes particular significance in the context of India’s rapidly expanding digital investment landscape. By integrating telecom intelligence with market surveillance systems, the MoU enables a transition from reactive enforcement to proactive prevention. The Financial Fraud Risk Indicator, drawing upon inputs from DoT’s Chakshu facility under Sanchar Saathi, financial institutions and Law Enforcement Agencies, will act as an early warning system to flag potentially fraudulent mobile connections before they are leveraged for financial scams.

The partnership builds upon the strong foundation laid by DoT’s ongoing initiatives. Under Sanchar Saathi, over 88 lakh fraudulent mobile connections have already been disconnected using ASTR. The deployment of FRI has helped prevent financial losses of approximately ₹2300 crore in the past ten months.

Going ahead, the MoU will facilitate the development of standard operating procedures for coordinated action and enable the sharing of red-flag indicators at an institutional level. With continuous engagement and adaptive mechanisms to counter evolving cyber threats, the DoT-SEBI collaboration is poised to significantly strengthen investor protection and enhance trust in India’s digital and financial ecosystem.